Bitcoin remittance service 37coins has announced that it will be closing shop and will no longer be offering its SMS-based wallet. Users have until the end of the year to withdraw their balances before the company’s official closure.
This bitcoin remittance startup aimed to use low-cost cell phone technology as a means to enable cheap transactions. It was able to take part in Plug and Play’s startup group before its development team ran into major headwinds.
Bitcoin Remittance Shutdown
“Despite the best of intentions, we were unable to deliver a quality product that showed product-market fit. We also found that SMS delivery between different carriers in countries outside the USA is unreliable. Lastly, our initial objective was not possible to achieve with the amount of capital raised,” said 37coins in a blog post.
The company was launched more than a year and a half ago and gained traction mostly because bitcoin remittance users sought a way to easily send bitcoins to new users and because the company had the potential to bring financial products to the 2.5 billion adults that are unbanked.
For bitcoin remittance wallet users, the withdrawal process could be started by sending a request through smswallet.com. Account verification will be conducted through an automated phone call. The client can then enter the deposit information and request withdrawal. The requests will be processed at the end of each month until December 30, 2015.
The blog post also went on to cite other bitcoin startups that cater to various market needs and deserves more community support. Among these are ChangeTip, BitGive Foundation, and Coins.ph.
“It has been a privilege getting to know all the bitcoin supporters around the world and to work together toward a fair and balanced financial system. Thank you for being such passionate supporters,” the entry concluded.