Cryptocurrency financial services company Blockchain.com has suspended operations of its asset management arm, Blockchain.com Asset Management (BCAM), due to the prolonged bearish market.
BCAM was launched in April 2022 with the aim of attracting institutional investors.
Shortly after the launch, the crypto industry faced tough times, with the collapse of crypto lender Celsius Network and several other notable crypto firms leading to a rapid decline in asset prices.
“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter now approaching the one-year mark, we made the business decision to pause operating this institutional product,” a spokesperson for Blockchain.com told Bloomberg.
Also read: The Shocking Truth About Crypto: Why Governments Are Terrified Of Decentralized Networks
The firm's decision to halt BCAM operations follows a January announcement in which the Cayman Islands-based company laid off 28% of its workforce due to challenges faced by the crypto industry in 2022.
Blockchain.com's suspension of BCAM operations is seen as a reflection of the market's volatility and the challenges faced by the crypto industry, including asset price fluctuations and the threat of increased regulation.
Nevertheless, the company said it remains committed to delivering reliable financial services to its clients.
The spokesperson told Bloomberg: "We will continue to focus on building innovative, reliable financial products for the millions of people who use our platform every day."
Photo via Pixabay.
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