Wyre, the San Francisco-based company specializing in cryptocurrency payments, has announced that it is beginning to cease operations. Due to a prolonged bear market, the firm faces major challenges. This situation has also had repercussions on several companies in the same sector, including FTX which went bankrupt, Coinbase and Binance which have been the subject of lawsuits by the United States Securities and Exchange Commission. Wyre’s decision to close its doors, however, is not due to the regulatory conditions in force in the American market.
Wyre’s debacle began when Bolt Financial canceled its planned $1.5 billion acquisition of the company in September 2022. Following that cancellation, Wyre faced further issues.
Juno, the company’s fiat-to-crypto conversion solution provider, encouraged users to withdraw their crypto assets from the Juno platform and hold them themselves, due to the uncertainty surrounding Wyre.
Subsequently, MetaMask announced that it was ending support for the Wyre platform, after several reports that the company was planning to shut down.
Despite these challenges, Wyre said the security of its customers’ assets remained its top priority. Customers have until July 14, 2023 to withdraw their assets through Wyre’s dashboard. After this date, a separate process will be put in place to recover the remaining assets on the platform.
Wyre also announced that it was looking to sell its assets. Interested parties can therefore inquire about the acquisition of the firm or its assets.
This follows several failed strategic attempts to stay afloat, despite securing funding from an undisclosed strategic partner. However, even with this funding, Wyre had to lay off 75 employees in January 2023.
Wyre is just the latest in a long list of cryptocurrency and blockchain companies that have failed to withstand the pressure of a relentless bear market.
Several companies, including Lightning Network payment platform BottlePay, NFT platform Terressa, cryptocurrency exchange HotBit and trading platform Digital Currency Group’s institutional TradeBlock, all ceased operations due to the prolonged crypto winter.
This turn of events provides further evidence of a market downturn. EmpireDAO also ended its lease at 190 Bowery in New York, an exclusive coworking space for cryptocurrencies.
Mike Fraietta, its founder, said: “We tried everything to get new sponsors, partnerships, and even crowdfunding. But we needed more help to survive at 190 Bowery. »
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