Much like the recently blocked Pirate Bay, Demonoid provides a file indexing service, not hosting any content itself, providing tracking links to computers that are currently sharing the desired content. The site was ranked amongst the top 600 globally and the top 300 in the US and had been placed on the US's Notorious Markets list.
So what does this mean for the filesharing community? Yes, it's another message that indexing sites are becoming fair-play for authorities, where previously laws left them untouched, as they did not directly infringe any content themselves. On the other hand, likely this closure will have little impact on the overall picture.
Source: Hexus