Bitcoin Exchange startup, Buttercoin is shutting down this week as they havent been able to generate new funding. Backed by investors included Google Ventures and Y Combinator, Buttercoin pulled in more than $1 million in funding in 2013. But then came the boom — with bitcoins soaring in value to well over $1,000 — and then the collapse in value to just above $200. Now most investors appear to be more interested in mainstream applications of Bitcoin’s blockchain technology than in the cryptocurrency itself.
Unlike most recent Bitcoin startups’ shutdowns owing to unscrupulous activities or loss of money, Buttercoin is solvent and will provide users with their balance in full.“With the dip in Bitcoin interest among Silicon Valley investors, we weren’t able to generate enough venture capital interest to continue funding Buttercoin.” they said in a statement.
“Buttercoin will be turning off our service on April 10th at 11PM Pacific,” the company said in a note on its website. “Be sure to move your bitcoins to another service and remove your dollar balances by Friday April 10th at 11PM.”
Buttercoin raised a total of $1.6 million from investors, including Google Ventures’ Kevin Rose and Chris Hutchins, Reddit founder Alexis Ohanian, Floodgate, Initialized Capital, Rothenberg Ventures and Switzerland’s Centralway, via its first early-stage investment fund.
(image credit: BTC Keychain)