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An online crypto wallet ceases its basic activity. Coinprism, a service defined as “colored coins wallet” has announced about shutting down its platform.

The announcement was made by the startup itself via Coinprism’s website and it refers to the fact that on Saturday, 31st March 2018, the company will close its doors. They recommend to users to “withdraw your funds and export your private keys before this date“.

Coinprism was founded in 2014, being among the first platforms to offer such services. To generate tokens, the platform used the Bitcoin currency. Thus, through a unique system, the new crypto assets created or “colored coins” had the ability to predict the future of crypto coins, especially for Ethereum.

The founder and Chief Executive Flavien Charlon wrote in an email to CoinDesk that:

While we have been one of the first in the area of blockchain tokens, long before ethereum was even released, the ecosystem has since shifted towards ERC-20, which is more flexible and more powerful than bitcoin-based systems. The unpredictability of transactions fees and confirmation times in the past couple of years have also made it hard to argue bitcoin is a good platform for this.”

If we review the glory period of the company, Coinprism was one of the successful platforms that invested in colored coins or Bitcoins that offered exclusive data and a level of uniqueness with the help of a special encrypted language. Colored coins can be used as a digital base for fiat assets or as loyalty points.

The platform’s path was not an easy one

However, as Charlon founder mentioned, the crypto industry has evolved rapidly and adapting to market demands was mandatory. Many of the tokens were further created based on the Ethereum’s ERC20 standard. He also noted that Coinprism’s route encountered many problems, one reason being the constant changes in legislation dedicated to the crypto industry, especially on Initial Coin Offering (ICO) projects

We didn’t see a business model that would have been viable long term. Regulators are starting to pay attention to the space, and activities around blockchain assets (tokens exchanges, ICO tools and services, etc.) are likely to become heavily regulated in the next 5 years. That means some of these services will have to shut down or restrict their activities, some might go to prison, and only a small number of well capitalized companies will successfully adapt to the regulator’s demands.”, Charlon stated to CoinDesk.

We would like to remind you that if you own crypto assets in Coinprism‘s wallets, the company’s recommendation is to withdraw them as quickly as possible!

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