The period that the cryptocurrency market is going through is a very difficult stage, especially since the market is in its infancy (only 11 years of emergence), and the lack of government laws and regulations made the market in a somewhat foggy stage, which in turn affected the users’ appetite and adoption of encrypted digital currencies.

Recently, Sparkswap, a decentralized cryptocurrency exchange that raised $3.5 million from:

Pantera Capital, Initialized Capital, and others…

It will close its doors.

Sparkswap is preparing to close its doors:

Mr. Trey Griffiths, founder of the “Sparkswap” platform, revealed the closure in statement He made it clear that the number of users was not enough to keep the business going.

Read:Retail Traders Dominate the Bitcoin Futures Trading Market… What Does That Mean?

The publication also stated:

Unfortunately, we were not able to build an audience large enough to support the business in the long term.

Creating a cryptocurrency company, especially one that interacts with the monetary banking system, is an expensive endeavor, as it is now.

So our self-incubation approach does not make our business sustainable.

The company has stopped accepting the subscription of new users.

It will end all trading services after March 24, with additional plans to terminate its Lightning node by the end of the month.

However, the company assured clients that their dollar funds would remain in their accounts with the help of banking partner AnchorUSD.

The post also states that Sparkswap users will not incur any fees associated with bank account recovery using AnchorUSD until the end of April.

Griffiths said he still believes in the importance of self-custody, and hopes it will be a matter of time before Sparkswap fails, leaving room for this kind of solution in the future.

The platform’s code will remain open source for those looking to contribute to the developments of Bitcoin and the Lightning Network.

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Griffith wrote:

For now, our focus as a company will shift to the digital economy more broadly, but we will be watching the evolution of Bitcoin and Lightning closely and plan to continue to be productive members of those communities.

Founded in 2017, Sparkswap is built on the Lightning Network and allows users to self-hold their cryptocurrency when trading on the platform.

The platform, through a financing round, raised $3.5 million last April.

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