Blockchain.com has decided to sunset its 11-month-old asset management arm, another victim of crypto winter.
According to a filing, Blockchain.com Asset Management (BCAM) has voluntarily applied to strike its name off the U.K. companies’ register.
London-based BCAM was launched 11 months ago in partnership with Altis Partners. The firm decided to shut down its operation even before filing annual accounts.
Blockchain.com on the Slide?
A spokesperson from the company told Bloomberg, “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.”
BCAM offered “algorithm-based risk management exposure” to Bitcoin and decentralized finance (DeFi) products.
In April 2022, Blockchain.com had ambitions to take the firm public by the end of 2022 and was in talks with several banks for the same.
But while trying to raise funds in October 2022, venture capitalist only valued the firm at $3 to $4 billion. The new valuation was nearly one-fifth of the $14 billion when it raised funds in March 2022.
Bear Market Cost-Cutting
In January, Blockchain.com laid off 28% of its staff after growing its headcount by five times in 2021. With job cuts and several other cost-cutting methods, it aims to return to profitability in 2023.
According to Bloomberg, another crypto exchange, Crypto.com, has laid off nearly 2,500 staff since 2022. The top four companies with the highest layoffs in the crypto industry are exchanges.
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