Bitspark, which is a blockchain remittance firm based in Hong Kong, has announced that it will close down on March 4. Customers will have until March 4 to withdraw their funds since the platform will remain running, and any customers who do not withdraw their funds by then will have 90 days to withdraw funds via customer service.
This shutdown comes as a bit of a surprise, considering that Bitspark has seen 400% month over month growth after adding a new product called Cash Point.
Bitspark was a bit vague in explaining why they are shutting down, saying it was due to ‘internal restructuring’, and that the decision was made by shareholders.
Additionally, Bitspark mentions that months of anti-government riots in Hong Kong combined with the Coronavirus pandemic were not the primary factor in deciding to shut down, but did not help either.
Essentially, Bitspark was already having unknown internal problems, and this combined with the Coronavirus outbreak and continued mass protests in Hong Kong made the situation for Bitspark intractable.
That being said, the Co-Founders of Bitspark emphasized that this should not be taken as a sign that the crypto and blockchain industry is in decline. Indeed, most blockchain and crypto firms have generally been doing well since the bear market of 2018 ended, and Bitspark is one of the few firms that has closed down.