As per reports and a filing that puts its name on the U.K. companies’ register list, Blockchain.com is shutting down its Blockchain.com Asset Management subsidiary. A company representative stated that the deteriorating “macroeconomic conditions” and the “crypto winter” were some of the reasons for concluding the institutional business.
Effects of Crypto Winter on the Cryptocurrency Industry
In the last couple of days, it appears that the crypto winter will persist, as the global crypto market capitalization has dropped 6.82% in the last 24 hours to $931 billion. Additionally, there has been a wave of failing crypto firms and bankruptcies throughout the industry, as well as considerable layoffs, with no firm seeming to be exempt. On Friday, reports pointed out that Blockchain.com is stopping its London-based subsidiary, Blockchain.com Asset Management (BCAM), and market analysts noted that the firm has been taken off the U.K. companies’ register list.
A representative for the company talked with Emily Nicolle, a Bloomberg News correspondent who was the first to report on the news. “Scoop: [Blockchain.com] has suspended its asset management arm, moving to shut down the unit exactly 11 months after it launched. In that time, the firm cut hundreds of jobs and saw its valuation possibly cut to a fraction of its former $14 [billion in] size,” Nicolle tweeted. Nicolle reached out to Blockchain.com, and a representative provided a comment regarding the BCAM situation.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions worsened rapidly,” a representative told Nicolle by email. “With the ‘crypto winter’ now near its one-year mark, we made the business decision to pause operating this institutional product.” BCAM was created through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was meant to appeal to high-net-worth individuals, institutional investors, and family offices.
What do you think the future holds for cryptocurrency firms amidst the on-going issues faced by the industry, such as the crypto winter and higher regulation? Share your thoughts in the comments section below.
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