The German crypto-neobank Nuri closes down after failing to find a buyer
Nuri, a German crypto-neobank, is closing its doors after failing to find an acquirer after filing for insolvency in August, CEO Kristina Walcker-Mayer said in an Oct. 18 blog. mail.
The CEO said the decision was taken because the company was unable to find a potential acquirer or investors after working with insolvency administrators on a restructuring plan for the past three months.
The platform will continue to process transactions until November 30. However, Nuri advised his customers to withdraw their assets by December 18.
Nuri filed for insolvency in August due to the prevailing situation in the crypto industry, and after one of its major business partners “significantly worsened the situation.”
Nuri closes down the business. We ask our customers to withdraw their funds and assets from and including 18/12/2022. Thank you for being a part of the Nuri community! 💜
Here’s a letter from our CEO Kristina Walcker-Mayer: https://t.co/gdOOeoOKDs
— Nuri (@NuriBanking) 18 October 2022
Walcker-Mayer said:
This year, the challenges have become insurmountable due to the tough economic and political environment of the last few months, which prevented us from raising new funds or finding an acquirer.
Around 45% of Nuri’s staff were laid off in May, as Walcker-Mayer said the move was necessary to address the technology and fintech valuation crisis.
Nuri, as a German-based neobank, enabled users to invest in Bitcoin and Ethereum through a German bank account.
Bear markets threaten the survival of many crypto firms
Just like Nuri, other crypto firms have been heavily affected by the recent bear markets. As of the time of filing this report, firms such as Hodlnaut, Celsius, Three arrows capital, Vauld, Coinbase and many others have been affected by the conditions.
Many of these firms, especially Hodlnaut, have temporarily suspended withdrawals, deposits and trading on their platforms. Also, these firms overwhelmingly reduced their workforce to save costs.
There is no doubt that the prevailing bear market is negatively affecting crypto firms. Remember that most of these firms, especially exchanges, depend on trading fees to survive in the highly competitive sphere. However, they were heavily impacted by a massive drop in volume due to a fall in crypto prices.
