Bitcoin remittance startup Freemit is officially closing its doors, two years after it first began an effort to build a remittance service.
CEO John Biggs, a former editor for TechCrunch, said that the decision to shutter the operation came after a “perfect storm” of a lack of a viable product to show investors and, consequently, the inability to raise funds.
Though Biggs said he’s not disillusioned with the technology as a result of the experience, he warned that he believes bitcoin entrepreneurs are giving up control of a technology meant to empower consumers to large banks.
Biggs told CoinDesk:
“You don’t want to start a bitcoin company right now. There’s a short window between when banks are going to start taking over and when guys with new functionality are going to be able to contribute.”
Founded in December 2014, Freemit was originally designed to be an optimized exchange, but after raising $150,000 from angel investors, the startup pivoted to peer-to-peer payments.
Freemit, Biggs said, employed as many as 10 people and went through two development teams, however, with over 8,000 beta users, it was still unable to deliver functioning tech.
Biggs went into additional detail about the company’s difficulties in a blog post published earlier today.