San Francisco-based crypto payments platform Wyre has announced its decision to shut down after nearly ten years in business, attributing the closure to the financial challenges brought on by the bear market, rather than any “regulatory agency direction” in the United States. In a blog post, the company stated that it made the difficult decision to wind down in order to “protect the best interest of our key stakeholders and customers.”
Wyre’s closure comes after a series of setbacks for the company. Firstly, one-click checkout company Bolt canceled its plans to acquire Wyre for $1.5 billion back in September 2022. A few months later, fiat-to-crypto on-ramp solution provider Juno began urging its users to remove their crypto assets from the Juno platform due to the reported “uncertainty” surrounding its custodial partner, Wyre. MetaMask followed suit by winding down support for Wyre’s crypto payment services, pushing the company to impose a 90% withdrawal limit for all its users. Although Wyre quickly lifted the cap after securing financing from an unnamed “strategic partner,” the company had already laid off 75 employees.
Despite the challenges, Wyre insists it continues to secure customer assets, encouraging users to withdraw their funds via Wyre’s dashboard through Friday, July 14th. The company’s assets are now up for grabs as it noted in a statement that “interested parties can now start inquiring about purchasing the firm’s assets.”
The demise of Wyre further adds to a growing list of crypto and blockchain firms that have crumbled under the pressure of the ongoing bear market. In May alone, Unbanked, BottlePay, HotBit, Terressa, and TradeBlock have had to shut their doors as well.
While it’s tempting to attribute Wyre’s fate to the bear market, one must consider that not all projects that fail during market downturns are so singularly affected. Companies that demonstrate a lack of adaptability, foresight, or resilience – in the face of both market pressures and broader industry fluctuations – may still find it difficult to thrive in all market conditions.
Ultimately, Wyre’s story serves as a cautionary tale for others navigating the crypto landscape, highlighting the importance of preparation, adaptability, and agility in the face of an increasingly unpredictable market.
Source: Cointelegraph
