Leading global provider of Bitcoin money machines Coin Cloud files for bankruptcy

Leading global provider of Bitcoin money machines Coin Cloud files for bankruptcy

Coin Cloud, one of the largest operators of Bitcoin Automats in the USA and Brazil, reported bankruptcy on January 8 and left liabilities of almost $ 500 million. The crypto winter and the breakdown of large companies such as FTX, Alameda Research and Blockfi are disappeared Coin Cloud suffers from the consequences.

According to the documents from Cloud, his greatest creditor Genesis Global Trading, a subsidiary of the Digital Currency Group, which owes the company more than $ 100 million for an uncertain loan. On the other hand, the second largest creditor, Cole Kepro, has owes of around $ 8.5 million, far from the debts to Genesis. Accordingly Coin Cloud, the company has assets of around 10,000 creditors between $ 50 and $ 100 million

Rise and fall of Coin Wolke

in January 2022, Coin Cloud presented itself as the largest operator of digital ATMs in the United States and has installed more than 1100 Bitcoin money machines worldwide. The company wanted to extend its networks to large US single chains, as the demand for Bitcoin money machines accelerated during pandemic and far exceeded the expectations of the company.

Coin Clouds own statistics show that the company operates more than 5,000 ATMs that are distributed between the USA and Brazil and support more than 40 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin and more. In addition, the company offers BTC bonus of up to $ 25 for customers who buy $ 150 in cryptocurrencies via one of their ATMs.

The growing industry of ATMs for cryptocurrencies in mid-2022 suffered a strong slump due to the crypto winter and the price correction of Bitcoin (BTC), which lost about 70 % of its value after it had reached an all-time high of $ 69,000 in November 2021 Cryptopotato reports.

The growing Bitcoin ATM Industrie

Despite the adversities, which is exposed to the global cryptocurrency atm industry, it remains one of the most growing industries in the crypto ecosystem.

According to Coinatmradar data, 33,281 ATMs are installed in the USA, which corresponds to 86.8 % of all Bitcoin money machines in the world, followed by Kanada with 2,554 ATMs, which corresponds to 6.7 % of the total of the ATMs worldwide.

Despite the challenges and the announced frightening news from Coin Cloud, the demand for ATMs for cryptocurrencies continues to grow, with the industry remaining an important player in the crypto ecosystem. The number of crypto money machines used worldwide is still relatively low compared to the number of Fiat money machines and exceeds the 3.2 million machines worldwide. This underlines the growth potential in the cryptocurrency atm industry.

Other crypto-ATM companies have not reported any financial problems. In fact, the crypto monetary machine provider Bitstop recently announced that he took over Genesis Coin to further expand its reach and is now checking over 31.9 % of all crypto monetary machines worldwide.

.