Wyre Crypto Payments Shutting Down: How This Affects You?

Key Points:

• Wyre, the crypto payments firm that was set to be acquired for over $1 billion, has announced it will shut down its operations due to market conditions.
• The firm had initially raised nearly $30 million from a number of investors, including the Stellar Development Foundation and crypto venture fund Pantera.
• This comes after a flurry of fintech deals that have fallen apart including deals between UBS and Wealthfront and Galaxy Digital and BitGo.

Wyre, a cryptocurrency payments firm that was set to be acquired for over $1 billion, has announced that it will be winding down its operations due to market conditions.

The company made the decision to protect its key stakeholders and customers but also stated that it is not due to any regulatory agency direction. Despite this, Wyre is continuing to secure customer assets, and withdrawals will remain open to clients until July 14, after which point the company will have a process in place to recover assets left on the platform.

Founded in 2013, Wyre has offered fiat-to-crypto infrastructure to companies operating in the crypto market. The company initially raised nearly $30 million from a number of investors, including the Stellar Development Foundation and crypto venture fund Pantera. However, in April 2022, a deal between Wyre and Bolt, a checkout and shopper network firm, was set to value Wyre at $1.5 billion, making it one of the biggest crypto deals to be announced. The firms’ ambitions were to “decentralize commerce — uniting their technologies to evolve and simplify digital shopping.”

The termination of the deal between Wyre and Bolt was announced in September, joining a flurry of fintech deals that have fallen apart, including deals between UBS and Wealthfront and Galaxy Digital and BitGo. Despite this setback, Wyre remains committed to securing customer assets and providing a smooth withdrawal process for its clients until its operations wind down on July 14.

As the crypto market continues to evolve, it is important for companies to remain adaptable and forward-thinking in order to stay competitive. With Wyre’s decision to wind down operations, the industry will likely see changes in the coming months as other companies work to fill the void left by Wyre’s exit.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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