Following reports that crypto payments company Wyre is going out of business, CEO Ioannis Giannaros offered a conflicting story, saying the company is simply “scaling back” Wyre has now announced that it is “modifying” its exit policy, citing the downturn in the crypto industry and “macroeconomic conditions” as factors that have affected the company. On Friday, Wyre said it is currently “exploring strategic options.”
Crypto industry turmoil; Wyre revises withdrawal policy; Topps halts NFT marketplace trading
Three days ago, on January 4, Bitcoin.com News reported that crypto payments company Wyre was shutting down its operations. The news followed the failure of the$1.5 billion Bolt acquisition dealand the departure of co-founder Michael Dunworth, who is stepping down from his role at the company.On January 6, Wyre issued an update to the community addressing speculation about the company.
“We have not been immune to the challenges of the current macroeconomic climate and recent events that have rocked the crypto industry.” Wyre explainedon Friday. Additionally, the company has changed its management structure, with Ioannis Giannaros becoming executive chairman and Stephen Cheng serving as interim CEO. In its update, Wire also announced changes regarding withdrawals, stating that users are now limited in the amount they can withdraw.
“We are modifying our withdrawal policy. Customers will continue to be able to withdraw funds, but at this time we are limiting withdrawals to no more than 90% of the funds currently in each customer account, subject to current daily limits,” Wyer’s update details, “which will best position us to serve our customers and stakeholders and maximize value ” he noted.
The Wyre withdrawal issue is also affecting other parts of the crypto industry, as collectibles and candy company Topps sent an email to customers about the incident and its impact on the non-fusible token (NFT) market.” You may have seen reports that Wyre, our secondary marketplace wallet service provider, may cease or reduce operations.” Topps’ email elaborates.” We are evaluating the situation and as of today, Wyre has issued an official statement.” Topps added
In response and as a precautionary measure, we are temporarily suspending transactions in our Shop and Marketplace effective immediately. Rest assured that your collections will remain safe and secure.
In late 2022, crypto blowouts and failures created a contagion that spread to nearly every corner of the ecosystem. Last year, several crypto companies that were considered reliable went insolvent, and it appears that 2023 will not escape bad news either.
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