Wyre Shuts Down due to the Impact of Bear Market

Wyre, a crypto payment firm, has announced the shutdown of its business due to financial challenges brought on by the bear market. The company, which was founded in 2013, has been providing payment solutions to businesses and individuals using cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). 

However, the prolonged bear market which began in 2017, and the inability of the firm to adapt to the regulatory agency directions in the United States, has made it difficult for the company to sustain its operations.

Wyre Gives Users Deadline to Access Their Funds

As announced by the firm, customers can continue to withdraw their assets until July 14, 2023, via Wyre’s dashboard. The company also mentioned that its assets are now up for sale and anyone who is interested in acquiring Wyre or its subsidiaries can reach out to its 88 partners.

Bolt’s Initial Merger Plans With Wyre Failed

San Francisco-based technology company Bolt Financial announced its intention to acquire the blockchain company in April 2022. Unfortunately in September, the technology company announced that it was no longer going further with its plan to acquire Wyre in the $1.5 billion deal.

There are speculations that Bolt’s reassessment of the deal may be due to the overpriced nature of the deal given the present market conditions, the collapse in the cryptocurrency market, and the financial technology industry.

Wyre Forces 90% Withdrawal Limit on Users

Days after two ex-employees purportedly warned about the likelihood of a closure, Wyre amended its withdrawal policy to restrict users from cashing out up to 90% of their assets. The cryptocurrency infrastructure provider said the decision was in the best interest of the community, in order to avoid the persistent bear market. It later lifted the restrictions after securing new funding

Notably, Wyre is not the only crypto payment firm to have been affected by the bear market. Other companies in the industry have also struggled to stay afloat, with some shutting down their operations permanently.

In conclusion, the shutdown of Wyre is a reminder of the challenges faced by crypto payments firms in the bear market. The industry needs to develop sustainable business models that can withstand the volatility of the crypto market.