Bitcoin exchange Buttercoin, which has previously received funding from Google Ventures, is shutting down, the company has announced.
The service will be turned off on April 10, at 11 PM PT.
That timeline gives users a very short period to withdraw their funds from the service. However, Buttercoin claims it is still “100% secure and solvent” and that all customers’ funds are accounted for.
For users that do not take any action before April 10, their dollar balances will be sent back to the accounts they came from. Bitcoin balances will be automatically converted to dollars and sent to bank accounts linked to user profiles.
Buttercoin, which launched in 2013 and received funding from startup incubator Y Combinator as well as venture capital fund Google Ventures, let users easily trade bitcoins for dollars and vice versa. In Nov. 2014, it also raised an undisclosed amount of funding from Wall Street firm Wedbush Securities.
The reasoning for the shutdown is simple: Lack of funding.
“With the dip in bitcoin interest among Silicon Valley investors, we weren’t able to generate enough venture capital interest to continue funding Buttercoin,” said the company in a statement.
While that may have been the case for Buttercoin, in recent months investors have poured money into other Bitcoin trading platforms, including Coinbase, which raised $75 million in January.
The price of Bitcoin rose above $1,000 in late 2013, but has fallen to less than $200 in Jan. 2015. At the time of this writing, the price of 1 bitcoin equals $257.41.
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