Crypto Payment Firm Wyre May Shut Down its Services in January: Reports

As per reports, the Wyre CEO informed employees in an email that the company would liquidate, terminating their employment.

A chair with a Wyre logo is being engulfed by a singular force
  • According to Axios, Wyre, a cryptocurrency payment company, is likely to shut down. 
  • The Wyre CEO sent an email to employees informing them that the company would liquidate.
  • Another email from the CEO says the firm is still operating but scaling back to plan ahead.
  • However, some employees complained about the firm’s sudden layoff decision.
  • Wyre went into negotiations with Bolt on a possible $1.5 billion takeover deal in April 2022.

As the bear market continues to hit hard, Wyre, a cryptocurrency payment firm, may cease operations, amid staff layoffs, according to a report from Axios

People familiar with the situation said that Ioannis Giannaros, the CEO, informed staff of the development. As revealed, the CEO sent a mail to employees stating that the company would liquidate, thus going to terminate their services this month. According to reports, the CEO said in another email that the firm is still operating but scaling back to plan what to do next. 

Some staff members, however, complained about the firm’s decision to consider a sudden layoff. They cited how the firm didn’t offer any compensation, pointing to a possible scenario in which Wyre might be liquidating. An employee took to LinkedIn to confirm the development.

Wyre Failed to Complete a Record-breaking Deal

Recall that Wyre went into negotiation with popular e-commerce company Bolt at the height of its struggles on a possible takeover deal worth $1.5 billion in April 2022. Reports indicated that the two parties hoped to complete the deal by the third or fourth quarter of 2022 before the plan’s eventual collapse in September

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Before the deal’s collapse, the acquisition was tipped to become the largest takeover involving a cryptocurrency firm. If the deal had materialized, Bolt would have integrated Wyre’s blockchain technology into its services, and Wyre would have operated a part of Bolt instead of existing independently.

Despite calling off the deal, the two agreed to remain business partners. Through Wyre, Bolt now receives payment in cryptocurrency in some selected markets. The recent development highlights a difficult period for the cryptocurrency sphere. 

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In 2022, the industry endured major setbacks that almost crumbled it. Notable firms like Celsius, Voyager, 3AC, FTX, and Core Scientific went bankrupt. In addition, the collapse of FTX, LUNA, and UST delivered a major blow to firms within their blast radius.

On the Flipside

  • Despite reports that Wyre may close its operations, the company recently launched its API stack on the BNB Chain. This will allow developers to leverage an integration process, enabling them to deploy projects faster and more securely.

Why You Should Care

As bankruptcies, closures of firms, and layoffs rocked the crypto ecosystem in 2022, it was perhaps a year to forget. Even though some analysts are hoping for a better year for the crypto space, the adverse effects of 2022 have continued into 2023.

 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Soumen Datta

Soumen has been a dedicated researcher and writer in the field of cryptocurrencies for the last few years. Even though Indian crypto regulations are still unclear, he believes that India will continue to innovate in the years to come. He loves to play his guitar and sing along in his spare time. He holds bags mostly in BTC, ETH, BNB, MATIC, ADA.