Prixbit closes suddenly
Prixbit, a cryptocurrency exchange that introduced a new mining strategy for users, announced it closed its operations as of July 15. The exchange, which opened in January 2019, released a notification that asks users to withdraw cryptocurrencies and cash stored in the exchange by August 9, adding that all services will shut down after 12 a.m. that day. Incentive mining The idea for establishing Prixbit dates back to 2018, when some exchanges rewarded for trading on their platforms in their own tokens. But the system has triggered excessive trading and generated inequitable rewards. To overcome the shortcomings, Prixbit opened in January with its ‘incentive mining’ model. The idea is that the exchange will give users its tokens to be used as fees for trading, which different from existing mining models. Prixbit would immediately dispose of the PRX tokens from users. If the exchange lacked PXC, the incentive mining was deactivated and turned into typical trading. Prixbit also registered a patent for the incentive mining. Shutting down running out of money? The founding members of Prixbit earned trust among cryptocurrency investors. March’s token closed early due to high demand. But Prixbit abruptly announced the closure, citing the difficulties running business. “Prixbit is under financial difficulties. We aim to create a cryptocurrency exchange that benefits users, but the reality was harsh with a number of new competing exchanges. We acknowledge the failure of our business. It is not ideal to exhaust all the remaining assets. Instead, we want to launch refund programs for the remaining assets while closing the operations. This is the best way to reduce losses for users,” the statement said. Prior to the notification, users were not able to communicate with the exchange operators on Blockchain Garage on Kakao Talk, which made the users anxious. Parker’s note Prixbit had good reputation even going back to 2017. But the sudden closure is no more than an example of the irresponsible take-the-money-and-run attitude. Instead of releasing a simple statement announcing the closure, a concrete plan for follow up measures would have been preferable.