The Dublin-based Coinprism, a wallet service founded in 2014, will close on March 31.
Users of the exchange platform have been urged to withdraw funds and redirect them to another wallet.
The creators of Coinprism believe their offering has become obsolete in light of ethereum, according to reports.
Along with bitcoin, ethereum is blockchain-based distributed platform which generated the cryptocurrency.
The value of ethereum has been on the rise since last year and currently trades for around $860.
Meanwhile, bitcoin has been on the decline since December 2017 since its peak of $19,000. Today it is valued at $8,734.
An alert posted on the Coinpism’s website said: “Coinprison will be closing down on March 31, 2018.
“Make sure to withdraw you funds and export your private keys before this date.”
Coinprism was a bitcoin wallet which allowed users to store and create ‘coloured bitcoins’.
The company’s website said: “Coinprism allows you to ‘colour your bitcoins’.
“You can create, issue, send and receive these Coloured Coins across the bitcoin network (all these for the price of a bitcoin transaction) to anyone with a bitcoin address, the same way bitcoins are sent (note that you can also use Coinprism as a normal bitcoin wallet to store, send and receive bitcoins).”
In an email seen by CNN, the company told its users that while bitcoin and “coloured coin” funds are independent of the Coinprism platform – instead residing on the blockchain – they cannot be accessed without the use of a private key.
As a result their funds will not disappear alongside the Coinprism exchange but users will not be able to access the unless they export their key.
To keep colour coin assets, users are being advised to find an open-asset compatible wallet.
Coinprism’s social media accounts have not been updated since 2016.