Wyre, a popular cryptocurrency payment processor, has announced its intention to cease operations within the next 30 days, reports Axios.
Axios said two unnamed employees had confirmed the issue to the press, saying they had received an email from the company’s CEO, Ioannis Giannaros. The CEO has confirmed that Wyre will cease operations by the end of January after his difficult 2022.
“We will continue to do what we can, but I would like to ask everyone to be mindful of the fact that we will have to scale back our business in the coming weeks,” read Giannaros’ email.
The email did not disclose whether current employees will receive severance pay for the abrupt termination of their contracts, but the company’s dire financial situation has reduced the likelihood of severance payouts. Speculation is swirling that there is.
“Wyre is not going to continue as a profitable business,” said a former Wyre technical engineer after being laid off at LinkedIn.
Wyre became popular during the peak of the bull market in 2021 and caught the attention of investors. A potential $1.5 billion acquisition with Bolt fell through following a significant valuation cut due to challenging macroeconomic conditions.
Maju Kuruvila, CEO of Bolt, said, “We will continue our existing commercial partnership with Wire to pave the way for the integration of cryptocurrencies into the ecosystem and bring Wire’s innovative cryptocurrency infrastructure to the world. bring it,” he said.
It is widely believed that the botched acquisition by Bolt, the extended bear market, and the implosion of FTX may have impacted Wire’s finances. Axios reports that despite Wyre ending its plans, the company will operate as usual but has confirmed it will “scale back” to plan its next steps.
List of Digital Asset Firms Shrinking Operations Grows
2022 was arguably the darkest year in the history books of the cryptocurrency ecosystem. A handful of businesses marred by the implosion and spillover have been forced to cease operations or file for bankruptcy.
FTX, BlockFi, Three Arrows Capital (3AC), Voyager Digital, and Celsius Network are some of the big names that have been forced to cease operations during the turbulent year. Other exchanges that caught the eye of the storm include Zipmex, Hodlnaut, and Vauld, while others have had to cut staff strength in order to survive.
Experts suggest the full impact of FTX’s collapse won’t be felt until 2023, prompting industry players to prepare more companies to bite the dust.
Watch: Digital Asset Exchanges and the Future of Investing
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