Crypto Payment Firm Wyre Shutdowns, Cites Prolonged Bearish Market Conditions
The San Francisco-based Wyre announced the closure of its operations, marking the end of the decade-long business of crypto payments. The statement conveyed by the firm confirmed the start of winding down operations, with parties interested in the firm’s assets invited to inquire and purchase.
Wyre Battling Numerous Financial Challenges Attributed to Bear Market
The crypto-based payments firm ruled out the hawkish stance adopted by regulatory agencies as the basis for its closure. Instead, Wyre attributes the closure to the multiplicity of financial challenges emerging during the bear market.
The firm disclosed the imminent closure through difficult-to-reach was inevitable to safeguard the interests of its primary stakeholders and customers. The Friday, June 16 statement conveyed via the firm’s blog post lamented the shutdown.
The statement restated Wyre’s devotion to guaranteeing the safety of customers’ assets. The firm urged the customers whose holdings are still within the Wyre platform to expedite their withdrawal using its dashboard.
The crypto payment firm issued a month’s notice for customers to withdraw assets. All customers are expected to execute withdrawals by Friday, July 14. The firm indicated that it would deploy a separate and unique process allowing customers to recover assets still held on the platform.
The Wyre team echoed the statement to suggest that the firm’s assets are put for sale. The firm asked interested buyers of Wyre’s and subsidiaries’ assets to contact the 88 Partners.
Wyre Inevitable Ruin Evident as Partners Desert
The firm is in severe deterioration, particularly since one-click checkout firm Bolt had, in September 2022, terminated the $1.5 billion acquisition plan.
Signs of the firm approaching inevitable ruin became evident when Juno, the provider of fiat-to-crypto on-ramp services, warned its users to withdraw their cryptos. Juno directed the users on January 4 to withdraw their crypto assets from the self-custody, citing the uncertainty of the custodial partner Wyre.
MetaMask would replicate the Juno move to terminate supporting crypto payment services extended to Wyre, citing its uncertainty. A few days after MetaMask and Juno’s exit, Wyre would impose a 90% withdrawal cap for the users.
Wyre would suddenly lift the 90% cap in a January 13 statement. Besides, the firm attributed the cap lift to securing an anonymous strategic partner to resolve the financing challenges. While Wyre reported recovery, it announced the layoff of 75 employees.
Growing Casualty List From Prolonged Bear Market
The move by Wyre asking customers to withdraw assets positions it alongside the growing list of blockchain and digital assets firms buckled by the long-running bear market.
A review of May’s development revealed the shutdown of the crypto fintech firm Unbanked and HotBit crypto exchange. Also, the Teressa platform for nonfungible tokens terminates operations like the Lightning Network-based payment platform BottlePay. Lastly, Digital Currency Group (DCG) admitted that its institutional-oriented trading platform TradeBlock was shutting down.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
