Purse.io has announced that they are shutting down, with new signups being disabled as of April 16, shopping and open orders being disabled and cancelled on April 23, and withdrawals being disabled on June 26 since the website will go offline at that point. The exact reasons for Purse.io’s shutdown has not been disclosed.
Essentially, people can trade cryptocurrency for gift cards on Purse.io, and generally these gift cards are available at steep discounts of 10-30%. The fact that gift cards can be obtained for steep discounts with crypto via Purse.io is often referenced as one of the best use cases for cryptocurrency.
At this time Purse.io has given no reason as to why they are shutting down and the announcement is quite sudden and unexpected considering Purse.io’s solid reputation.
It could be speculated that Purse.io is shutting down because they could not afford the overhead of their office and 17 employees, and they may have burned through their $1.3 million of seed money.
That being said, it would make more sense for Purse.io to downsize if that was the issue, rather than totally shutting down.
Perhaps another possibility is that government regulators went after Purse.io, since it is feasible that credit card scammers and identity thieves were using Purse.io to cash out stolen gift cards for crypto. This is just speculation, but it is possible, especially considering the sudden nature of the closure of Purse.io, and the fact that Purse.io is not offering an explanation.
In any case, there are certainly other places to trade gift cards for crypto, and alternative platforms will undoubtedly receive Purse.io’s market share in the coming weeks and months. Therefore, although this is the end of Purse.io, it is not the end of the gift card to crypto exchange sector.