BitPrime Launches Community-led Solution In Response To The Trading Halt

New Zealand-based cryptocurrency retailer, BitPrime, paused trading on its platform due to decreased trading volumes, extreme market volatility causing liquidity issues, and overhead costs increasing. BitPrime told customers in an email on Thursday the 12th of May that trading had been suspended, as the company couldn’t guarantee fast trading execution and liquidity of customer funds.

An outpouring of support and offers of financial backing from the cryptocurrency and blockchain community has prompted BitPrime to launch The BitPrime Supporter Initiative, as an avenue for customers and the wider sector to support the company in a variety of ways.

"Our ongoing negotiations to recapitalise the company will take some time,” explained Ross Carter-Brown, CEO. “With the surprising and overwhelming feedback from our customers and the wider community, it’s clear to me that BitPrime only exists because of the community we serve. I believe that a community-led solution is crucial for the future transformation of BitPrime.”

More details on The BitPrime Supporter Initiative can be found at https://www.bitprime.co.nz/supporters/. The support will take the form of donation tiers and the rewards range from participation on the governance DAO to a lifetime PrimePass, BitPrime’s new membership program. Those who are a part of the DAO will be able to vote on company directions, and propose and vote on resolutions. PrimePass members will be provided with fees-free trading for the duration of their membership.

Since November last year, the total market value of all cryptocurrencies has plunged from an all-time high of over NZD4.6 trillion to just over NZD2 trillion. Experts believe this crash is largely tied to current world events, with the stock market experiencing similar dips. Further exasperating the issue is the collapse of stablecoin, TerraUSD (UST) which is supposed to be pegged to the value of USD. Investors panicked seeing a stablecoin lose its peg which led to a mass sell-off.

Jim Bianco, president of Bianco Research said “Confidence is shot in crypto and the risk of contagion is high. Any wobbles anywhere send everyone running.”

Other prominent crypto platforms have placed various levels of halts on trading this week, including Swytfx and Binance pausing all Terra (LUNA) and TerraUSD (UST) trading.

“As we saw from the 2018 ‘crypto winter’, this extreme event is likely to only be a blip on the radar, in terms of the long-term growth of the cryptocurrency sector and broader uptake of distributed ledger technology. We’re all feeling the pain across the board - In our investment portfolios, at the petrol pump and at the supermarkets. No part of the global economy is immune,” says Carter-Brown.

However, with Bitcoin, Ethereum, and altcoins rebounding in the past few days, it seems the risk sentiment is recovering. Many are seeing this temporary crash as an opportunity to buy cryptocurrencies while they are cheaper.

ABOUT BITPRIME

New Zealand owned, BitPrime is at the forefront of full-service cryptocurrency trading solutions in the country. We're passionate about our professional service and have a strong focus on providing free education and tech support for beginners through to professional investors. BitPrime is here to make it easy and secure to trade digital assets. BITPRIME LIMITED (FSP595609) Registered.

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