In a new blog post, the company said it was shutting down its service and its SMS-based wallet. However, users have until 30th December to withdraw their balances. More information about the withdrawal process can be found here.

The closure marks the end of a process that saw the startup take part in Plug and Play's bitcoin startup group. 37coins aimed to use low-cost cell phone technology as a means to enable cheap transactions, but according to the team, development ran into headwinds that ultimately proved insurmountable.

The post explained:

"Despite the best of intentions, we were unable to deliver a quality product that showed product-market fit. We also found that SMS delivery between different carriers in countries outside the USA is unreliable. Lastly, our initial objective was not possible to achieve with the amount of capital raised."

37coins also cited the growing focus of bitcoin projects that target the underbanked, and concluded by thanking those who had supported the project.

"It has been a privilege getting to know all the bitcoin supporters around the world and to work together toward a fair and balanced financial system," the team wrote. "Thank you for being such passionate supporters."

37coins did not immediately respond to a request for comment.

Images via 37coins, Wikimedia