Blockchain.com ends asset management after less than a year: report

Blockchain.com ends asset management after less than a year: report

blockchain.com began in 2011 as the first Bitcoin blockchain explorer and was later extended to Wallet services and hosted his own crypto exchange.

After years of growth, the company decided that in 2022 the year would be the year in which it would expand into asset management services. Unfortunately, the company has not preserved the years of experience from the Baisse.

for almost a year in operation

blockchain.com, which had a value of around $ 14 billion in the introduction of BCAM, developed the asset management service in cooperation with Altis Partners.

The service was aimed at wealthy private individuals and institutional investors and sold the idea of ​​investing in cryptocurrency with less risk, since "algorithm-based risk-controlled commitment"-a word sequence that does not mean much if you consider everything trades, crypto or not, are carried out with the help of algorithms. Margin Calls, for example, are technically based on an algorithm that reduces the risk of the broker.

Back then Charlie Mcgarraugh, Chief Strategy Officer at Blockchain.com, believed that the newly founded wealth management branch was a great opportunity for investors worldwide.

"Like everything in crypto, you won't know until you try. But as with everything in crypto, we think that we will grow into the clear blue sky. It's a great opportunity."

Unfortunately, the timing was notoriously bad. After almost a year - 11 months to be precise - the above -mentioned commitment submitted BCAM an application for deletion from the British commercial register.

crypto-winter guilt

According to a spokesman for BCAM, the decision to close the doors was made after almost a year of adverse market conditions with little or no relief.

"Blockchain.com Asset Management started in April 2022, shortly before the macroeconomic conditions deteriorated rapidly. Since the crypto winter is now approaching the one-year brand, we have made the business decision to hire the operation of this institutional product

This makes Blockchain.com the youngest victim of the crypto winter-although, similar to the decision of Silvergate, it seems to be in an orderly manner at the beginning of this week without being necessary and others.

At the moment, no information is available on how or when exactly the company will stop working and how it will liquidate all active assets to return them to customers.