Bitcoin Startup Pikapay Shuts Down

In the world of Bitcoin and virtual currencies, many services will shut down operations over time.  There are plenty of reasons why this might be the happening, as impending regulation, financial worries or team disputes are all cause for concern.  In the case, however, of Dutch Bitcoin startup Pikapay, an internal disagreement between founders has forced the service to shut down for the time being.

Pikapay – Send Bitcoin via TwitterPikapay Small

Pikapay’s business model has a lot of potential, though.  Social media is playing an ever-increasing role in the daily lives of consumers and having the option to send money over Twitter could turn out to be quite popular.  In recent years, competing services has popped up, with ChangeTIp being one of the most notable names on that list.

Using Pikapay’s service was very straightforward: sign-in to the website with your Twitter account and select a certain amount of Bitcoin to another Twitter handle.  Transactions complete within 10 seconds or less, contributing to Pikapay’s success over the years.  

The same principles applied when it comes to receiving Bitcoin payments through Twitter.  Pikapay will notify the recipient of a bitcoin transfer to their Twitter handle and credit the recipient account with the funds.  Once the recipient signs into Twitter, the balance will reflect the incoming transfer (on top of a pre-existing balance).

Similar to how Paypal’s “payment request” feature works, the same functionality was offered by Pikapay.  Said feature could be used for either donations or for selling goods or services through Twitter.  A convenient link to complete the payment was generated by Pikapay automatically, making the whole experience very consumer-friendly.

Unfortunately, all of a sudden, the services of Pikapay has come to an abrupt end.  No new accounts are being accepted at this time and existing users have until 1st March, 2016, to withdraw any remaining balances.  Pikapay will take care of all transaction fees associated with moving funds to an external Bitcoin wallet.

Internal Founders Dispute Causes Havoc

A few days ago, an announcement was posted on the Bitcoin Wednesday website, explaining the reason for Pikapay’s shutdown.  According to the information provided, there is an internal dispute between Pikapay founders, as the future of the enterprise is being discussed right now.

Shutting down the Pikapay service was not originally planned, as one of the co-founders took it upon himself to terminate the service.  Because of this rash decision, there was no time frame to warn existing customers about the impending shutdown, other than posting a worrying message on the Pikapay website.

The remaining co-founder, as well as the majority interest holder, both deem the shutdown of Pikapay as an unwarranted activity.  While the matter is being resolved behind the scenes, open dialogue with existing and new Pikapay customers is on the agenda as well.  It will be interesting to see how this matter plays out and what will happen to Pikapay in the near future.

Source: Bitcoin Wednesday Blog

Images courtesy of Pikapay, Shutterstock