• Blockchain.com Asset Management will be suspending operations due to prolonged crypto winter conditions.
• The business was launched just 11 months ago in April 2022 and the crypto industry hit a rough patch shortly afterwards with asset prices falling rapidly.
• The company said it was letting go 28% of its workforce in January due to these challenges.
Blockchain.com Asset Management Suspending Operations
Finance blockchain services company Blockchain.com is suspending operations of its recently launched asset management arm, citing the prolonged crypto winter as the reason for its decision, according to a Bloomberg report.
Asset Management Launched Last Year
Blockchain.com Asset Management, or BCAM, was started in April 2022 in an effort to attract institutional investors. Shortly after, the crypto industry hit a rough patch, with asset prices falling rapidly following the bankruptcy of crypto lender Celsius Network, and continuing with the fall of multiple other prominent crypto firms.
Reason For Suspension
„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,“ a spokesperson told Bloomberg.
Workforce Reduction Announced In January
In January, the Cayman Islands-headquartered firm said it was letting go 28% of its workforce due to the challenges the crypto ecosystem faced in 2022.
Conclusion
Blockchain.com didn’t immediately respond to a request for comment from CoinDesk regarding their suspension of operations for their asset management arm due to prolonged crypto winter conditions that have affected many companies within this sector over the past year