A major shocking announcement was made overnight by the owners of Moolah.io, as this platform/company will have to close its doors. Moolah recently took over management of the MintPal exchange, which has been relaunched as MintPal V2 just a few days ago. Let’s see what is going on.
Moolah has been existence for about 10 months now, which is quite impressive considering the high rate of failing Bitcoin/Digital currency startups over the past year. Unfortunately, even Moolah and Moopay LTD could not escape this fate.
With costs ever rising, and revenue dwindling, it is becoming increasingly hard to survive in the digital currency landscape. On top of that, Moolah has lost a number of key clients whom were an integral part of their ongoing operations.
To show you how difficult it is to run a business in the world of BItcoin and digital currency, here is a quote from Moolah’s posts :
‘In the space of a single month, we have rapidly burned through our reserves and are now in the position of having a negative balance sheet. Losing certain clients that we relied on for revenue, means that we do not have the funds to continue paying staff, or pay our suppliers. Our costs over the first year have been astronomical in terms of legal and operational expenses, and our staffing costs now greatly outweigh our incoming funds.’
Moopay LTD will be filing for bankruptcy and ceasing operations following the administration process. As things stand right now, the Moopay platform will shut down on October 31st, so if you still have funds in an account over there, make sure to withdraw it as soon as possible.
The good news is no consumer funds has been lost, as they are held in the equivalent of a client trust account. If you are a business or entity with funds in Moopay LTD in any other fashion, you will be contacted over the coming month as a part of the bankruptcy and creditor process. As most business partners withdraw funds daily, the number of affected business should be fairly small.
As most of you will know, Moopay LTD was able to start their operations thanks to a financial injection from several investors. Said investors will receive a share of the remainder of the available funds after all assets have been liquidated and creditors are paid off.
Most of you will be interested to find out what will happen to MintPal, or MintPal V2, which was only relaunched a few days ago after Moolah acquired management of the exchange. A new management team has been sourced, which has resulted in MintPal going offline immediately.
The new management team will make some stability changes, improve the User Interface and fix some bugs. Any resolutions regarding missing balances will also be handled by the new team.
Even though it’s all a bit vague at the moment, an official update will be posted in MintPal.com over the coming days, with more details and timeframes as to when we will be able to use the exchange again. Let’s hope this won’t take another few weeks.
Moofarm is a completely separate entry from Moopay LTD and is not affected. Existing customers will receive an email with further details shortly.