When the idea for bitcoin exchange Crypto Street was conceived, its founders aimed at creating the ‘forex’ platform of digital currencies. Mentioning forex broker OANDA as an inspiration for their platform, Crypto Street planned on offering commission-less orders multi-currency (both digital and fiat) trading, and a user interface aimed at traders.
We first wrote about Crypto Street in Forex Magnates back in May 2013. Following that preview, the platform went live last August. However, similar to other exchanges, liquidity was harder to come by than initially expected, and by October, wide spreads were common. Tradable products were also limited, with trading only in LTC/BTC, FTC/BTC, and FTC/LTC.
Following a turbulent start, which also included occasional technical problems, Crypto Street began to gain traction in November and December with the surge of trading taking place in volumes. As a result, in December, its CEO, Shamoon Siddiqui announced to clients that they were planning on making changes and initiating dollar denominated trading.
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Updating clients, Siddiqui has today stated that Crypto Street is suspending trading on its platform as he stated “As my last e-mail indicated, we are changing our business model and with that in mind, we are suspending trading effective immediately. What does this mean? You can no longer buy / sell crypto currencies on our platform.” The company though is still processing both deposits and withdrawals, with processing time though expected to take up to a week.
On a positive note, rather than fold its cards, Siddiqui explained that they are initiating their business model change and are also raising funds from investors as he commented “We are in talks with some of you regarding investment, and the prospectus will be out later this week, so thank you for your patience on that as well. As you can imagine, we’ve had our hands full with the trade cessation operation. If we haven’t yet spoken and you’re interested in investing, please do get in touch with me and let’s make it happen.”
Overall, the current saga shows the growing pains involved with creating a bitcoin exchange business. While many firms created plans to launch as interest for digital currencies increased in early 2013, it appears that many exchanges underestimated how hard it would be to draw liquidity to their platforms and create banking partnerships to support fiat deposits and trading. Stay tuned to DC Magnates for more updates on Crypto Street.