Amidst the continued fallout from the crypto season, California-based crypto payment channel Wyre has announced a limit on withdrawals for all users. Payment companies join others who have previously limited withdrawals or laid off workers in order to survive in the long run.
Per year official statement, the company has restricted users from withdrawing all funds deposited on the platform. But the platform allows 90% of user funds, with daily transaction limits also enforced. The amount of BTC and ETH that can now be withdrawn in 24H remains at 5 and 50. In addition, the daily transaction limit for US dollars is $1,500,000 and €1,400,000 in Euros.
Notably, Wyre Payments announced the modification of its withdrawal policy via Twitter on January 7, a day after rumors that the platform would shut down operations this month. This news may prompt investors to withdraw funds from dubious payment gateways. And as a result, crypto companies are limiting withdrawals for fear of insolvency. In addressing the community, Wyre noted in a tweet:
Acting in the best interest of our community is our top priority, and we are exploring strategic options for the company that will allow us to navigate the current market environment and fulfill our mission to simplify and revolutionize the global payments ecosystem.
Wyre Executive Management Shakeup
In addition, the crypto company found a management shake-up with Yanni Giannaros stepping down as CEO and will now be compensated as executive chairman of the platform. On the other hand, Stephen Cheng, chief compliance and risk officer, was appointed as the company’s interim CEO.
Considering the company’s growing problems, crypto wallet service provider MetaMask also stopped Wyre payments and announced its removal from the mobile aggregator on January 6. MetaMask added:
Wyre has been removed from our mobile aggregator. Don’t use Wyre.
Downtrends Affected Crypto Companies
Not only is Wyre coming to the wire, but many crypto service platforms are suffering the catastrophic effects of a long-lasting bear trend. Even the market climate caused some platforms to disappear from the ground. The crypto market has recorded consistent price dumps since BTC touched its all-time high (ATH) of $69,000 in November 2021.
In particular, the collapse of Terra (LUNA) in May 2022 aggravated the situation, which pulled down the price of cryptos and reduced the trading volume. And it further increases the selling pressure in the market and affects the ecosystem related to LUNA.
But the crypto market is on the way to recover from the previous losses, and the FTX fiasco, which happened in November of the same year, added fuel to the fire. In addition to changing investor sentiment about virtual assets, falling prices have reduced the revenue of crypto service platforms, so many crypto companies have filed for bankruptcy.
Option images from Pixabay and charts from TradingView.com