Cryptocurrency financial services company blockchain.com has suspended operations of its asset management arm, Blockchain.com Asset Management (BCAM), due to the prolonged bear market.
BCAM was launched in April 2022 with the aim of attracting institutional investors.
Shortly after the launch, the cryptocurrency industry faced hard times, with the collapse of the cryptocurrency lender. Celsius Network and several other notable crypto firms leading to a rapid drop in asset prices.
โBlockchain.com Asset Management launched in April 2022, shortly before rapidly deteriorating macroeconomic conditions. As the crypto winter nears the one-year mark, we have made the business decision to pause operation of this institutional product,โ a Blockchain.com spokesperson told Bloomberg.
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The firm's decision to halt BCAM operations follows a January announcement in which the Cayman Islands-based firm laid off 28% of its workforce due to challenges facing the crypto industry in 2022.
Blockchain.com's suspension of BCAM operations is seen as a reflection of market volatility and challenges facing the cryptocurrency industry, including asset price fluctuations and the threat of increased regulation.
However, the company said it remains committed to providing reliable financial services to its customers.
The spokesperson told Bloomberg: "We will continue to focus on creating innovative and trusted financial products for the millions of people who use our platform every day."
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