Blockchain.com started out as the first Bitcoin blockchain explorer in 2011, and later expanded into wallet services and hosts its own cryptocurrency exchange. After years of development, the company decided to expand into asset management services in 2022. Unfortunately, years of experience have not saved the company from the bear market.
Blockchain.com, worth about $14 billion when BCAM launched, partnered with Altis Partners to create the asset management service.
The service is geared toward high-net-worth individuals and institutional investors, and promotes the idea of investing in cryptocurrencies because of "algorithmic-based risk management exposure" -- a string of words that doesn't mean much given all that trading, crypto or not, means. is done using an algorithm. For example, margin calls are technically based on an algorithm that reduces the broker's risk.
At the time, Blockchain.com’s chief strategy officer, Charlie McGarraugh, saw the newly formed asset management division as a great opportunity for global investors. “Like everything in crypto, you can’t know until you try. But like everything in crypto, we think we’re growing into clear blue skies. There’s a big opportunity here.” Unfortunately, the timing is terrible. According to Bloomberg, less than a year 11 months to be exact BCAM has filed a request to be removed from the U.K. company register less than a year after the aforementioned revelations.
According to a spokesman for BCAM, the decision to close its doors comes after almost a year of unfavorable market conditions with little relief.
“Blockchain.com Asset Management was launched in April 2022, shortly before macroeconomic conditions rapidly deteriorated. As the year of crypto winter looms, we have made the commercial decision to suspend operations of the institution’s products.”
This makes Blockchain.com the latest casualty of the crypto winter though, as Silvergate decided to end it earlier this week it appears to be in order and doesn’t need bankruptcy proceedings and others like TerraformLabs, Voyager, FTX of.
Currently, there is no information on how or when the company will cease operations and how it will liquidate all active assets to return them to customers.
