Cryptocurrency financial services company Blockchain.com has suspended operations of its asset management subsidiary on March 9 as per Bloomberg report in reaction to the ongoing crypto winter.
The asset management subsidiary was launched less than a year ago, but it appears it could no longer stand the test of time given the severe market conditions.
scoop: @blockchain has suspended its asset management arm, moving to shut down the unit exactly 11 months after it launched. in that time, the firm cut hundreds of jobs and saw its valuation potentially slashed to a fraction of its former $14bn size
on Terminal now, web soon 🔜 pic.twitter.com/PhaKP0a6mk
— Emily Nicolle (@emilyjnicolle) March 9, 2023
It is noteworthy that the subsidiary known as Blockchain.com Asset Management is situated in London, and has been removed from the United Kingdom list of registered companies since March 5.
It was gathered that one of the reasons for its removal was the failure of the company to file its first annual account.
Blockchain.com Asset Management was launched in April 2022, in partnership with Altis Partners, which was saddled with the responsibility of managing the company’s portfolios via Blockchain.com technology.
It would be recalled that the parent company, Blockchain.com, which was created in 2011, established the now-defunct Blockchain.com Asset Management after a successful funding round that raised its valuation from $5.2 billion to $14 billion.
Blockchain.com Follows Silvergate Bank Pathways
The decision by Blockchain.com to suspend its Asset Management firm cannot be differentiated from the resolution of the Silvergate corporation, which led to the wind-down of its subsidiary Silvergate Bank.
More than ever before, numerous crypto-related firms are battling financial crises due to the bear market. This has led to bankruptcy filings by companies such as FTX crypto exchange, Celsius, Voyager crypto lender, among others.
In the same vein, the ordeal had led to the layoff of workers. Crypto lender Gemini recently laid off 10% of its staff, which was the third round of layoffs in less than a year.
The layoff crisis reached a peak in January 2023, with more than 3000 employees laid off by several crypto firms. There is no mincing word that no crypto firm is immune to the harshness of crypto winter. Time will tell which of them will stand the test of time.