Blockchain.com started out as the first Bitcoin blockchain explorer back in 2011 and later expanded into wallet services, as well as hosting its own crypto exchange.
Following years of growth, the company decided that 2022 was the year they would expand into asset management services. Unfortunately, the years of experience did not save the firm from the bear market.
Operational for Just Under a Year
Blockchain.com, which was worth about $14 billion when BCAM was launched, created the asset management service in collaboration with Altis Partners.
The service was geared towards high-net-worth individuals and institutional investors and upsold the idea of investing in cryptocurrency with less risk due to “algorithm-based risk-managed exposure” – a string of words that don’t mean much, considering all trades, crypto or not, are done using algorithms. Margin calls, for instance, are technically based on an algorithm that reduces the risk for the broker.
At the time, Charlie McGarraugh, the chief strategy officer at Blockchain.com, believed the newly formed asset management arm was a great opportunity for investors worldwide.
“Like everything in crypto, you won’t know until you try. But like with everything in crypto, we think we are growing into the clear blue sky. It’s a big opportunity.”
Unfortunately, the timing was notoriously poor. After just under a year – 11 months, to be precise – of the aforementioned exposure, BCAM filed a request to be struck off the UK Companies’ register, according to Bloomberg.
Crypto Winter to Blame
According to a spokesperson for BCAM, the decision to shutter its doors came after nearly a year of adverse market conditions with little to no relief.
“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.”
This makes Blockchain.com the latest victim of crypto winter – although, much like Silvergate’s decision to wind down earlier this week – it seems to be in an orderly fashion, without the need for bankruptcy proceedings as in the case of TerraformLabs, Voyager, FTX and others.
Currently, no information is available on how or when exactly the company will cease operations and how it will liquidate all active assets in order to return them to customers.
The post Blockchain.Com Quits Asset Management After Less Than a Year: Report appeared first on CryptoPotato.