With localmonero shutting down, what would be the challenges of creating a federated version of localmonero? Traders and buyers can have accounts at different servers but still be able to trade each other and see each others' listings.

The pros i can see are: It would be harder to stop without a single point of failure, and brave server maintainers can host their services in different jurisdictions to prevent legal troubles. And it would be very difficult to prosecute server admins, as they aren't the creator but merely hosting a site.