Despite most of the recent Bitcoin news being primarily dominated by BitLicense regulatory woes and tribulations, there is some other news to report as well. Unfortunately, not all of that news is positive, as online Bitcoin wallet provider 37Coins has shut its doors for good. Traditional issues, such as funding and overseas issues, are the alleged causes for this decision.
37Coins: Text Messaging To Transfer Funds Not As Lucrative As Expected
Making a third-party Bitcoin wallet service stand out among all of the other options is not an easy feat these days. Most Bitcoin users will stick to a select circle of preferred applications, whether it is on mobile or on computer. 37Coins had a great solution to tackle this problem head-on though: a hybrid system of text messaging and Bitcoin transfers.
Using the pre-existing SMS infrastructure around the world and tying in Bitcoin payments to this system sounds like a very good idea on paper. However, pulling it off successfully is a different matter entirely, and this is where the first problems started to arise for 37Coins.
Whenever companies are forced to rely on third parties to run their business model,