Wyre Shutdown: The Details and Deadline
Since the beginning of 2022, cryptocurrency firms everywhere have been subject to regulatory scrutiny as well as increased funding limits, leading many to close their doors. Wyre, a cryptocurrency payment and blockchain technology firm, is the next on the list with plans to cease operations in July 2023.
Read on to learn more about why this firm is shutting down, and what to expect if you are a current Wyre customer.
What is Wyre?
Wyre is a San Francisco-based cryptocurrency and blockchain tech firm that specializes in the addition of blockchain technology to various apps in order to facilitate cryptocurrency payments. They assisted with the building of blockchain wallet apps and payment infrastructure. They also built platforms that allowed swaps between cryptocurrencies.
Unfortunately, things took a turn for the worse in late 2022 as the cryptocurrency boom began to slow. Bolt, a rival cryptocurrency company originally planned to acquire Wyre but later backed out of the deal. This left the company with few options and no way to please investors who had kept the company afloat for the last few years.
Why is Wyre Shutting Down?
There were rumors going around that Wyre was closing due to regulatory restrictions, however, in the end, this wasn’t the case. An interview with the CEO, Stephen Chang, revealed that Wyre wasn’t facing problems with the SEC as many other companies were, but rather problems with finding customers.
This shutdown isn’t sudden though, as many investors and users of the platform were surprised in January 2023 when Wyre announced more stringent withdrawal policies. These policies limited what customers could withdraw from the platform in a day to prevent the company from going belly up overnight like Silicon Valley Bank.
Of course, this caused panic, and even those who weren’t planning on withdrawing their funds just yet rushed to get off the platform. The withdrawal limits helped slow the crash, but the company is ultimately penniless and can no longer stay in business. Many users speculated that the platform was preparing to shut down, however, the CEO assured customers, at the time, they were simply scaling back to fit their company to the current economical climate.
He has since changed his tune.
The CEO has come back to state that while he regrets that they will no longer be able to serve customers, it is difficult to run a company with no capital, so there is no other way out of this poor market other than shutting down. Even though Wyre was operating legally and not facing issues with the SEC as so many other cryptocurrency companies currently are, he simply sees no way to continue operations without capital.
Related: Silicon Valley Bank: What Happened and What We Can Learn
When is Wyre Shutting Down?
Wyre announced on June 16th, 2023, that the last day they will be in operation is July 14th, 2023. After this time, the platform will be completely shut down and users will no longer be able to access it.
If you are a current Wyre customer with funds on the site, all your funds must be withdrawn prior to this date. It is unclear if the previous restrictions imposed still apply, so it is advised to log in and try to withdraw your funds as soon as possible.
If it is already after July 14th as you are reading this, don’t panic, as Cheng has stated there will be an alternate way available to withdraw any funds you may have left on the platform. This method has not yet been released, as we suspect it will be a lot of work to get your money back, which is why it is better to withdraw your money before the deadline.
Once months have passed since the deadline, it is assumed that the company will disband, and it will become increasingly difficult to recoup any remaining investment on the site.
Additionally, if you are a business that utilizes Wyre technology or uses their product tech support, please contact them as soon as possible to discuss options for moving forward. As of the writing of this article, Wyre had 88 customers who would need to find another blockchain technology platform to call home once the shutdown is complete.
Related: Elizabeth Warren’s War on Crypto
What Does This Mean for Future Companies Like Wyre?
It is truly sad to see a reputable company like Wyre be shut down. While we often discuss scam products on this site, Wyre was a legitimate business that assisted companies with adding blockchain compatibility to their apps. We are truly sad to see them go as more companies like Wyre are needed in order to allow for the wide adaptation of cryptocurrency around the world.
Hopefully, other blockchain technology sites will be able to weather the current cryptocurrency winter, but nothing is guaranteed.
What Are the Alternatives to Wyre?
If you are looking to add blockchain to your app or platform, don’t despair as there are still many other platforms out there.
The main ones are those run by large corporations like AWS run by Amazon and Azure run by Microsoft. Of course, choosing one of these options also limits the decentralization offered by blockchain because of the centralized natures of these companies, which will have your platform dependent on them.
If you are looking for a way to add blockchain capabilities to an app or website, investigate more decentralized options like Hyperledger. If you are a developer yourself, then taking the time to develop directly on EVM on Ethereum is also an option.
While there is always a possibility these platforms could shut down, they are much less likely to do so than other small projects because of their widespread reach. If future shutdown is still a concern, then it is probably best to hire a software engineer to add blockchain capabilities to your platform directly or learn how to do so yourself.
Overall, it is very sad to see a company like Wyre shutting its doors and ceasing operations. Hopefully, other firms in the area will fare better, especially as crypto finally began to rally this month—but of course, there isn’t any guarantee of the future of crypto or any firm in the space.
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