Recent reports and the U.K. companies’ register list indicate that Blockchain.com is discontinuing its asset management subsidiary. A company spokesperson has stated that this decision was made due to the current macroeconomic climate and the prolonged crypto winter.
Blockchain.com shutters asset management arm
March 9, 2023https://t.co/I1LsHT1bGY pic.twitter.com/25zBp0aFxE
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The Reason for this Step
Over the past 48 hours, the downward trend of the crypto winter appears to be continuing, with the global crypto market capitalization seeing a 6.82% decline to $931 billion. This is indicative of a continued bear market in the space.
A contagion of crypto-related firms and bankruptcies has spread across the industry, leading to substantial job losses, with no business left unscathed. According to reports on Friday, Blockchain.com is terminating its London subsidiary, BCAM, and market watchers have also observed that the firm has been removed from the U.K. companies’ register list.
Blockchain.com has ceased the operation of its asset management division, according to a statement from a spokesperson of the firm. Emily Nicolle, a correspondent for Bloomberg News, reported the news. This division was first launched around 11 months ago. Within that period, the firm has cut hundreds of jobs and its valuation has been drastically reduced from its original $14 billion to a fraction of that size. The company has decided to shut down this unit as part of its decision-making process.
Words from the Company Spokesperson
Nicolle contacted Blockchain.com regarding the decision of BCAM and a spokesperson responded that the Asset Management service was officially launched in April 2022, prior to the sharp decline of the economic environment.
At the one-year mark of the crypto winter, BCAM, which was created from the collaboration between Blockchain.com and Altis Partners, made the official decision to suspend the operation of its institutional product. When it was first introduced, BCAM intended to attract wealthy individuals, prominent institutional investors, and various family offices.