• Blockchain.com is closing its London-based crypto asset management arm less than a year after its launch due to market challenges.
• The company had raised a funding round at a $14 billion valuation before the crypto winter caused difficulties and by October, the valuation was only $3-$4 billion.
• Blockchain.com has cut 25% of its workforce (around 150 people) and CEO Peter Smith reported that Three Arrows Capital defaulted on approximately USD 270 million worth of cryptocurrency and US dollar loans from Blockchain.com.
Blockchain.com Closes Crypto Asset Management Arm in London
Major crypto platform Blockchain.com is closing its London-based crypto asset management arm less than a year after its launch.
Market Challenges
The persistent market obstacles, such as price volatility, legal difficulties, regulatory scrutiny, and exposure to failed businesses, have left a marked impression on the crypto industry as a whole, and Blockchain.com is not an exemption.
Launch of BCAM
Blockchain.com Asset Management (BCAM), a crypto asset management platform managed by Altis Partners, was launched in April 2022. However, per a Bloomberg report, citing a filing, BCAM applied to be struck off the UK companies register on Monday and had yet to file any annual accounts.
Crypto Winter Effects
A spokesperson for the exchange and wallet provider was quoted as saying,”Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly.
With crypto winter now approaching the one year mark, we made the business decision to pause operating this institutional product.”
Staff Cuts & Default Impact