The Hong Kong-based cryptocurrency exchange platform has announced the end of its operational activity. Among the reasons cited are a lack of sufficient growth, low metrics, and consequently rising maintenance costs. However, the team will continue to work on a new product, to be released soon.

Melotic is going to shut down in a little less than two weeks. All users have until May 15th to withdraw their balances and deposits. This was announced in a corporate blog post on May 3rd.

“We did not experience enough growth in this product to justify the ongoing costs of development, maintenance, and support”, explains the post. Instead, the company will focus on what the statement describes as “exciting new products in development”.

The cryptocurrency exchange platform shuts down after much effort and funds were put together to support it. In fact, Melotic closed a seed round in October 2014 with US $1.17 million raised from Ceyuan Ventures, Bitcoin Opportunity Corp, and 500 Startups.

Melotic is not the only bitcoin-service that succumbed to low growth: earlier this year, Brawker, a 18-months old company, also announced that it’s not going to be providing services any longer. The startup’s users had until April to withdraw their money.

The team announced that, after the closure, some of the code, “particularly the multisignature framework”, would be open-sourced for anyone who finds it useful to utilize. In February, the UK-based Netagio also announced its plans to close its bitcoin, pound, US dollar, and euro exchange platforms. The service promised to restructure its business model and launch something new before summer.

 

Tatiana Kovlyagina