Protocol Ventures, a leading fund of funds in the crypto asset class has announced plans to shut down its operations. The closure set for the end of the year or the first quarter of 2023, follows its continuous loss and failure to recover from it.
As per a Bloomberg report, detailing the firm’s journey and lessons learned, the US-based investor said it will be refunding investors’ cash. Also, according to the report citing sources familiar with the matter, a notice was sent out to investors at the end of October regarding the firm’s move.
Notably, investors have suffered a massive loss over the years. Although Protocol Ventures refuse to give out information about the company’s development, unknown sources said the investors had lost over 90% of their investments.
Protocol’s decision to close shop comes from its continuous loss in the digital-asset sector. Over the past year, the firm’s losses have amounted to about $2 trillion.
Protocol Ventures has previously invested in some companies, some of which are BlockTower Capital, Pantera, and Electric Capital, amongst others.
Crypto Firms Forced to shut down Operations
Owing to the prolonged bearish atmosphere in the crypto market, many crypto firms have caved under pressure and have had to shut down operations while some suffer liquidity issues.
Last month, Nuri, a German cryptocurrency exchange platform, announced that it will be shutting down its operations by the end of November. The Sony-backed crypto Neobank gave all customers up until December 18 to withdraw their funds.
The platform reached this conclusion after it failed to find an investor to support its restructuring process and keep the forum afloat after exposure to insolvent crypto lender Celsius and the prolonged crypto winter forced it to its knees.
Meanwhile, India’s tough stance on cryptocurrencies has forced the Blockchain and Crypto Assets Council (BACC) to shut down the organization after just five years of its existence.
Also, Bitcoin (BTC) mining and hosting firm Compass Mining was forced to shut down its mining activities in Georgia after an increase in energy costs pushed two of its partners out of the state.
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