Once valued at $1.5 billion, crypto payments provider Wyre will shut down by the end of January

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(Kitco News) – Crypto payments provider Wyre, which will reportedly shut down its services by the end of January, is in for the cryptocurrency winter.

According to a report from Axios, Ioannis Giannaros, CEO of Wyre, recently sent an email to company employees informing them that he was liquidating the company and plans to end services this month.

“We will continue to do everything we can, but I want everyone to prepare for the fact that we will have to wind up the business in the next couple of weeks,” the email states. “We’re still operating, but will scale back to plan for our next steps,” Ginnaros said in a follow-up email.

It seems that some employees knew this development was coming. On Dec. 31, Michael Staib, a technical engineer who previously worked for Wyre, said in a since-deleted LinkedIn post that “Wyre will not continue as a viable business.”

Popular cryptocurrency wallet MetaMask appeared to confirm Wyre’s demise on Thursday announced which removed Wyre from its mobile aggregator, which allows users to buy cryptocurrencies directly through their digital wallets.

“We are currently working on removing the extensions and appreciate your patience,” MetaMask said, urging users not to use Wyre on the mobile aggregator.

Wyre was originally founded in 2013 by Ioannis Giannaros and Michael Dunworth and raised a total of $29.1 million in nine funding rounds, Crunchbase data shows. Some of its investors include Kraken, Pantera Capital, Stellar Development Foundation and Samsung NEXT and Draper Associates.

Last April, one-click payment provider Bolt was in talks to acquire Wyre for a price of $1.5 billion, but the deal was finally terminated in September after Wyre and Bolt agreed to remain in business. independent.

According to Dunworth, the volatility of the cryptocurrency market and the general conditions of the technology market are the main reasons for the collapse of the deal.

There were plans for the two companies to enter into a commercial deal in which Bolt would implement Wyre’s one-click solution for Bolt’s customer platform, but that seems unlikely now following these developments at Wyre.

Wyre is far from the only company significantly impacted by the 2022 bear market. Aside from the crashes of Earth/Moon and FTX, which sent shockwaves of contagion throughout the ecosystem, many other companies have filed for bankruptcy, including Three Arrows Capital, Voyager Digital, Celsius, BlockFi and Core Scientific.

A host of other companies also announced significant layoffs including Kraken, Huobi, Galaxy Digital, Coinbase, Digital Currency Group, Genesis Global Capital, Dapper Labs, Bybit, Crypto.com, and Silvergate Bank.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee its accuracy. This article is for informational purposes only. It is not a solicitation to effect any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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