Unfortunately, as the bear bites hard, blockchain and cryptocurrency exchange company Blockchain.com has had to take some difficult measures. During the first quarter of 2023, the company laid off staff as it sought ways to reduce costs during this challenging time.
In addition to laying off employees, it was also revealed that Blockchain.com would be suspending its asset management arm. This decision was made after careful consideration by management, who determined that it makes financial sense given the current market conditions, where trading volumes are declining and interest rates are low.
Blockchain.com’s 11-month-old wealth management arm has been suspended from the firm, according to a report by Bloomberg. Launched by the crypto financial services company for about a year, the asset arm cites the prolonged crypto winter as the reason behind the decision to shut down operations, marking it as the latest victim of the crypto winter.
Blockchain.com has decided to form the subsidiary in London in April 2022 as Blockchain.com Asset Management in partnership with Altis Partners, following a funding round that has advanced its valuation. Altis Partner was to manage its portfolio using Blockchain.com technology, while Standard Custody & Trust Company was named custodial partner.
The subsidiary offered “regulated crypto investment products for institutional investors, family offices and high net worth individuals.” Before it was suspended, a spokesperson for Blockchain.com announced that the asset management arm’s operations would be suspended.
The company laid off 28% of its workforce in January, for a total of about 110 employees. However, the dismissal followed a blow to the company from a loan deal with the now-bankrupt Three Arrows Capital. Blockchain.com now has 280 employees, up from 160 employees at the beginning of 2021. All affected employees have been granted severance packages depending on the country.
Also, it was rumored in February that the company is likely to sell some of its assets to other crypto firms, but a Blockchain.com spokesman denied the rumor.
Moreso, in the midst of crypto winter, Blockchain.com has seen notable milestones such as registering in a few countries, striking a custody agreement with Anchorage Bank, and late last year partnering with Visa to issue a crypto card in the US. But those advances weren’t enough to withstand the impact of the market, hence the need to suspend its wealth management division.
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