Wyre, a crypto payments company formerly valued at $1.5 billion, will be shut down by the end of January
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Wyre, a cryptocurrency payments provider, has been decimated by the ongoing crypto winter and appears to be shutting down operations by the end of January.
The email added, “We will continue to do what we can, but I want everyone to prepare for the fact that we will have to wind down the company over the next few weeks.” In a follow-up email, Ginnaros explained: “We are still operational but will be backing down to review our next steps.”
According to a story by Axios, Ioannis Giannaros, Wyre’s CEO, recently emailed employees at the company to say he was going out of business and liquidating the business this month.
It seems that some workers foresaw this outcome. Technical engineer Michael Staib, who once worked for Wyre, stated on Dec. 31 in a now-deleted LinkedIn post that “Wyre will not survive as a profitable business.”
Users were urged not to use Wyre on the mobile aggregator by MetaMask, who said, “We are working on extension removal and appreciate your patience.”
When it announced on Thursday it had removed Wyre from its mobile aggregator, which allows users to buy cryptocurrency directly from their digital wallets, well-known cryptocurrency wallet MetaMask appeared to confirm Wyre’s demise.
According to Crunchbase, Ioannis Giannaros and Michael Dunworth founded Wyre in 2013 and have since raised $29.1 million across nine fundraising rounds. Kraken, Pantera Capital, Stellar Development Foundation, Samsung NEXT, and Draper Associates are some of its backers.
One-click checkout provider Bolt’s $1.5 billion acquisition of Wyre was mooted in April, but negotiations were eventually called off in September after Wyre and Bolt decided to continue as separate companies.
The main reasons for the failure of the deal, according to Dunworth, are the volatility of the cryptocurrency market and the general state of the technology business. Following Wyre’s recent advances, it now seems doubtful that the two companies will enter into a commercial agreement where Bolt will integrate Wyre’s one-click solution for the Bolt client platform.
The 2022 bear market had a significant impact on many companies, not just Wyre. Other companies that have filed for bankruptcy include Three Arrows Capital, Voyager Digital, Celsius, BlockFi, and Core Scientific, in addition to the collapses of Terra/Luna and FTX that sent shockwaves of contagion across the ecosystem. Numerous other companies including Kraken, Huobi, Galaxy Digital, Coinbase, Digital Currency Group, Genesis Global Capital, Dapper Labs, Bybit, Crypto.com and Silvergate Bank have all announced large staff cuts.
Summary of the news:
Wyre, crypto payments company formerly valued at $1.5 billion, will be shut down by the end of January. Check all the news and articles from the latest business news updates.