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 transactions
In an October 18 blog post, CEO Kristina Walcker-Mayer said that Nuri, the German crypto neo-bank, closed its doors as it failed to find a buyer after filing for bankruptcy in August. 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 a restructuring plan over the past three months.
https://twitter.com/NuriBanking/status/1582285606545018880
The platform will continue trading until November 30. 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 “deteriorated significantly”. Walcker-Mayer said:
This year, the challenges became insurmountable due to the difficult economic and political environment of the past months, which kept us from raising new funds or finding a buyer.
Supported by Sony
As we have reported as Kriptokoin.com, Nuri entered the markets as Bitwala in 2015. For a while, it had a prominent 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 value of the investments amounted to 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. Therefore, about 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 been severely hit by bear markets lately. As of the date of this report, firms such as Hodlnaut, Celsius, Three Arrows Capital, Vauld, Coinbase, and others have been impacted by the circumstances. Many of these firms, especially Hodlnaut, have temporarily suspended withdrawals, deposits and trading on their platforms. Moreover, these firms have overwhelmingly reduced their workforce to save costs.
There is no doubt that the current bear market has negatively impacted crypto firms. Many of these firms, especially stock markets, relied on trading fees to survive in a highly competitive environment. However, they were severely impacted by the massive drop in volume due to the drop in crypto prices.
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