Blockchain.com Suspends Asset Management Arm Amid Crypto Winter
• Blockchain.com announced suspension of operations for its asset management arm, citing prolonged crypto winter as reason.
• The business was launched 11 months ago and the crypto industry hit a rough patch shortly after.
• Blockchain.com laid off 28% of its workforce due to industry challenges in 2022.
FinanceBlockchain.com Suspends Asset Management Arm
Crypto financial services company Blockchain.com is suspending operations of its recently launched asset management arm, citing the prolonged crypto winter as the reason for its decision.
Background on BCAM
Blockchain.com Asset Management (BCAM) was started in April 2022, in an effort to attract institutional investors. However, shortly after launching, the crypto industry hit a rough patch with asset prices falling rapidly following the bankruptcy of crypto lender Celsius Network, and continuing with the fall of multiple other prominent crypto firms.
Impact on Staffing
In January, Blockchain.com said it was letting go 28% of its workforce due to the challenges faced by the crypto ecosystem in 2022.
Reason for Suspension
„With crypto winter now approaching the one year mark, we made the business decision to pause operating this institutional product,“ a spokesperson told Bloomberg.