Bitcoin startups Bonafide stops working

Company Bonafide, seeks to create an efficient reputation system of the addresses in the bitcoin network has decided to complete its work and to begin the liquidation process in less than a year after receiving funding of $ 850,000 from investors, including Blockchain Capital and Quest Venture Partners.

According to a letter sent by mail to shareholders is one of the "leading" bitcoin companies appealed to the representatives of the Bonafide a proposal on the possible acquisition of a startup. However, Bonafide was forced to say no, because such a deal considered reasonable only to the members of the team, but not for investors.

Bitcoin startups, founded in 2013, offering API, which provides access to data about the reputation of bitcoin firms providing currency exchange services, electronic wallets and other types of customer service.

In an email to the co-founders Bonafide Karthik Balasubramanian and Brian Moyer noted that the reason also lay in the fact that investors have become more interested in technology than applications, primarily focused on the customer.

Balasubramanian and Moyer said:

"We see the desire of investors to invest funds and to participate actively in the development of various projects┬╗.

As a result, the co-founders of the company have stated that they are unlikely to bring significant profits to refocus its product or provide additional funding.

In an interview with CoinDesk Moyer said that a key factor in the decision to close was also the continuing decline in the use of Bitcoin users. In addition, the businessman explained the reasons why their team is that there is no hurry to launch other projects.

Moyer also said that members of the team Bonafide from April this year to work for free and have already begun to study the possibility of switching to a sector associated with the service to ensure compliance with the requirements in the field of bitcoin.

Asked about the future plans of the team Moyer did not give a specific answer, adding only:

"We will continue to closely monitor the bitcoin industry."