According to reports and a filing showing its name being removed from the UK company registration list, Blockchain.com is closing its subsidiary Blockchain.com Asset Management. A company spokesperson cited deteriorating “macroeconomic conditions” and the “crypto winter” as some of the reasons for halting the institutional business.
The impact of Crypto Winter on the cryptocurrency industry
Over the past two days, it looks like the downward pressure of the crypto winter will continue, as the global crypto market capitalization has fallen 6.82% over the past day to $931 billion. Additionally, there has been a contagion of bankrupt crypto companies and bankruptcies across the industry, as well as significant layoffs, with no company appearing to be spared. On Friday, reports detailed that Blockchain.com is halting its London-based subsidiary, Blockchain.com Asset Management (BCAM), with market watchers noting that the company has been removed from the UK company registration list.
A company spokesperson spoke with emily nicolea Bloomberg News correspondent who was the first to report in the news. Scoop: (Blockchain.com) has suspended its asset management arm, proceeding to shut down the unit exactly 11 months after launch. In that time, the company cut hundreds of jobs and saw its valuation potentially reduced to a fraction of its previous size of $14 (billion),” Nicolle tweeted. Nicolle reached out to Blockchain.com and a spokesperson provided a comment on the BCAM situation.
“Blockchain.com Asset Management was launched in April 2022, shortly before rapidly deteriorating macroeconomic conditions,” a spokesperson told Nicolle via email. “With the ‘crypto winter’ now approaching the one year mark, we have made the business decision to pause operation of this institutional product.” BCAM was formed through a partnership between Blockchain.com and Altis Partners. When BCAM was announced, it was meant to attract high net worth individuals, institutional investors, and family offices.
What do you think the future holds for cryptocurrency companies amid current challenges facing the industry, such as the crypto winter and increased regulation? Share your thoughts in the comments section below.
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