Blockchain.com Shuts Down Asset Management Subsidiary Amid Crypto Winter and Industry Turmoil –
According to reports and a filing showing his name has been removed from UK company registers Blockchain.com incorporated its subsidiary Blockchain.com Asset Management. A company spokesman cited deteriorating “macroeconomic conditions” and the “crypto winter” as some of the reasons behind the shutdown of institutional business.
The Impact of Crypto Winter on the Cryptocurrency Industry
For the past two days, crypto winter bearish pressure seems to be sustained as global cryptomarket capitalization down 6.82% to $931 billion in the last day. Additionally, there has been contagion from failing crypto firms and bankruptcies across the industry, as well as significant layoffs, with no firm appearing to have been spared. It was widely reported on Friday that Blockchain.com was halting its London-based subsidiary Blockchain.com Asset Management (BCAM), and market watchers noted that the company had been delisted from UK company registers.
A company spokesman spoke Emily Nicolea Bloomberg News correspondent who was report first in the news. “Scoop: [Blockchain.com] closed its Wealth Management division and filed for closure of the entity exactly 11 months after its inception. In that time, the company has cut hundreds of jobs and potentially lowered its valuation to a fraction of its previous $14 [billion in] Greatness,” Nicolle tweeted. Nicolle reached out to Blockchain.com and a spokesperson commented on the BCAM situation.
“Blockchain.com Asset Management launched in April 2022, just before macroeconomic conditions began to deteriorate rapidly,” a spokesman told Nicolle via email. “With ‘crypto winter’ now approaching the one-year mark, we have made the business decision to discontinue operations of this institutional product.” BCAM was formed through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was intended to attract high net worth individuals, institutional investors, and family offices.
What do you think the future holds for cryptocurrency companies given the ongoing challenges facing the industry such as the crypto winter and increasing regulation? Do share your thoughts in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, T. Schneider / Shutterstock.com
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Source: Crypto News Deutsch
