A few hours ago, very sad news has been announced, as Vault of Satoshi will be closing its doors on February 5th 2015. Even though Vault of Satoshi never got the brand recognition it deserved, it was a well-established platform for cryptocurrency traders.As of right ow, no further deposits will be accepted, and users have ample time to execute their final trades and complete withdrawals of funds.
Vault of Satoshi – Who, What and Why?
Lots of people have used services offered by Vault of Satoshi during the existence of the platform, yet it has never become as big as similar exchanges. That might have been in part due to the fact that, while VoS offered exchanges between cryptocurrency and fiat, they only accepted USD and CAD as fiat currencies. While a ton of cryptocurrency business is conducted in North America, it did limit their customer base a bit.
Note from the author : I know most people can get their hands on either USD or CAD fiat currency, but hardly anyone will go out of their way if there are other options available which deal in native currency.
Vault of Satoshi has always been a reputable, 100% Canadian-owned virtual currency exchange platform. Not only did they allow for (select) fiat currency trading, but also crypto-to-crypto trades, such as Bitcoin to Dogecoin, Peercoin to Litecoin, et cetera. Unfortunately, VoS never saw the bigger exchange volumes the platform could have easily handled.
You also have to keep in mind that running a platform such as Vault of Satoshi requires a lot of staff. Not just for coding and security, but also bookkeeping, administration and the help desk. Over the years, Vault of Satoshi’s staff has grown to no less than eleven members, and it is heartwarming to see so many women being involved with cryptocurrency. For a full list of staff members, visit this page.
The original idea behind the creation of Vault of Satoshi stems from forming a group of like-minded people who want to make changes that matter. Paving a new way of thinking requires several people coming together, and going on a journey together, filled with adventure, obstacles and fun. They all have one thing in common though : the belief that cryptocurrency can create a more sustainable economy where the people are the governing body.
The Closing of Vault of Satoshi
As you would come to expect, especially coming on the heels of the major Bitstamp issues yesterday, speculation would run wild about why Vault of Satoshi is closing down. To counter those rumours, the team has released an official statement, in which they explain the need to shut down this digital currency exchange platform :
“We’d like to reassure the community that it has absolutely nothing to do with insolvency, stolen funds, or any other unfortunate scenario. To this day we are proud to have run the first full proof-of-reserve exchange in the industry, with strict compliance and security regimes. Our decision stems from opportunities presented by a new business that has forced us to reexamine our priorities.
Our founders and team of developers began work on a new, non-cryptocurrency project about 6 months ago, which has since become quite successful. We are forced to make a choice on where to expend our efforts, as we simply do not have time to continue operating both businesses. We feel splitting our focus would be a disservice to the customers of Vault, so although our competitors may lack some of the features, currencies, and innovations that Vault brought to the Canadian market, they will serve you well for your basic exchange needs.”
While that statement clearly explains the reason for shutting down VoS, a lot of speculation is running wild in regards to this new “mystery project” the founders have been working on. We will do our best to get in touch with the Vault of Satoshi team and conduct a written interview with them, during which we will hopefully receive some more information regarding this project.
Litecoin/CAD Trading Volume Picks up on Vault of Satoshi
Even though Vault of Satoshi is not accepting any new deposits from this point forward, there is still plenty of trading going on, especially in the Litecoin/CAD market. When we look at the statistics provided by BitcoinWisdom, the LTC/CAD value has gone up by as much as 12.5% over the past 24 hours, which is pretty impressive.
Despite the “buy” side of the LTC/CAD order book being nearly empty, somebody is buying up small chunks of Litecoin along the way. No major orders, but the price keeps creeping up slowly, which is rather interesting to keep an eye on over the next few days. There are some hefty sell orders to be found in the order books, so I wonder if anyone is planning to buy those up before February 5th?
Have you ever used Vault of Satoshi? Why (not)? Let us know in the comments below!