Nuri, a Germany-based Bitcoin and altcoin neo-bank, announced that it is closing its doors. Nuri came to the fore by receiving funds from Sony, Coparian and Earlybird investment platforms. Here are the details…
Bitcoin platform disables its processes
In an Oct. 18 blog post, CEO Kristina Walcker-Mayer said that German crypto neo-bank Nuri closed its doors after filing for bankruptcy in August after failing to find a buyer. The CEO said the decision was made because the company was unable to find a potential buyer or investor after working with bankruptcy executives on the restructuring plan over the past three months.
The platform will continue trading until 30 November. However, Nuri advised his clients to withdraw their assets by December 18. The current situation in the crypto industry has impressed Nuri. It also filed for bankruptcy in August after one of its main business partners “significantly worsened the situation.” Walcker-Mayer said:
This year, the challenges became insurmountable due to the strong economic and political environment of the past months, which prevented us from raising new funds or finding a buyer.
Based on Sony
Koindeks.com As we have also reported, Nuri entered the markets as Bitwala in 2015. For a while, he had a valuable position in the cryptocurrency ecosystem. It offered a regulated platform that allowed customers to invest in cryptocurrencies. Data from the Dealroom platform reveals that many large-scale investments have been made in the platform. Coparian, Earlybird Venture Capital and Sony Financial Ventures, the investment arm of renowned company Sony; had invested in the company. The cost of the investments was 45 million dollars in total.
Many crypto companies are under threat
Walcker-Mayer said this move is necessary to rectify the tech and fintech valuation crisis. As a result, around 45 percent of Nuri’s employees were laid off in May. As a Germany-based neobank, Nuri allowed users to invest in Bitcoin and Ethereum through a German bank account.
Like Nuri, other crypto firms have also been significantly affected by bear markets lately. As of the date of this report, companies such as Hodlnaut, Celsius, Three Arrows Capital, Vauld, Coinbase, and others have been impacted. Many of these firms, notably Hodlnaut, have suspended withdrawals, deposits and trading processes on their platforms indefinitely. Moreover, these firms have overwhelmingly reduced their workforce to save costs.
There is no doubt that the current bear market is negatively affecting crypto firms. Many of these firms, especially the stock markets, relied on trade prices to survive in a highly competitive environment. However, they were impacted in significant form by the massive drop in volume due to the drop in crypto prices.