According to reports and a file showing his name delisted from the UK company registration list, Blockchain.com is shutting down its subsidiary Blockchain.com Asset Management. A company spokesperson cited deteriorating “macroeconomic conditions” and the “crypto winter” as one of the reasons for halting institutional business.
The Impact of Cryptocurrency Winter on the Cryptocurrency Industry
Over the past two days, it appears that the downward pressure from the crypto winter will continue, as the cryptocurrency market capitalization fell by 6.82% over the past day to $931 billion. Additionally, there have been contagions of failed crypto companies and bankruptcies across the industry, as well as massive layoffs, with no company seemingly spared. Friday, reports Detailing that Blockchain.com discontinued its London-based subsidiary Blockchain.com Asset Management (BCAM), market watchers noted that the company had been ousted from List of British company registrations.
A company spokesperson spoke with Emily Nicolea Bloomberg News reporter who was The first to report in the news. “scoop: [Blockchain.com] It put its asset management arm on hold, moving to close the unit exactly 11 months after its launch. In that time, the company had cut hundreds of jobs and felt its valuation could drop to a fraction of its previous value of $14. [billion in] Size,” Nicolle tweeted. Nicolle reached out to Blockchain.com, and a spokesperson provided comment about the BCAM situation.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions rapidly deteriorated,” a company spokesperson told Nicol via email. “With the ‘Crypto Winter’ just over a year away, we have made the business decision to pause this institutional product.” BCAM was formed through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was supposed 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 the industry faces, such as crypto winter and increased regulation? Share your thoughts in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, T. Schneider / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.