- Wyre has folded, citing “market conditions”
- The company will close in a month, with customers asked to withdraw their funds
- Wyre implemented a 90% withdrawal cap in January
Crypto payments platform Wyre has announced that it is to fold after almost ten years in the game. Wyre blamed “market conditions” for the closure of the company, saying it had decided to shutter the company “to protect the best interest of our key stakeholders and customers” and that there were no regulatory issues with its operation. Wyre’s issues date back to the back end of last year, and additional financing in January hasn’t been enough to save the company.
Metamask Deal Held Promise
Things were looking good for Wyre last year when the company signed a deal with Metamask to provide it with Apple iOS integration, allowing Metamaske users to buy crypto through Apple devices. However, in January this year, the company imposed a 90% withdrawal limit on customers, saying that the move was “in the best interest of our community”.
In a sign that it was fearing an old-school bank run and that its reserves were falling low, the company added that it was “exploring strategic options” that would enable it to “navigate the current market environment and deliver on our mission to simplify and revolutionize the global payments ecosystem.” To most, however, this was a sign that the company was running out of money.
Crypto Contagion Lives On
Despite securing additional funding just days later and resuming withdrawals, the company has clearly realized that it can no longer remain a going concern, and a Twitter thread on Friday confirmed this:
If you have assets on the Wyre platform, you can withdraw them via Wyre’s dashboard through Friday, July 14th. After then, we will have a separate process to recover assets remaining on the platform. We will post details on the process on our website and blog.
— Wyre (@sendwyre) June 16, 2023
Wyre joins the growing list of companies that have folded this year, showing that the crypto contagion that began last year is still impacting crypto firms.
