The crypto market has been going through something of a rough patch as of late, as various companies continue to walk up to the chopping block. Over the past year alone, many high-profile names have filed for bankruptcy, shaving millions off the overall market cap of the entire market.
However, despite the crypto market losing some of its biggest names, it seems that new names keep coming up to the ever-growing list of failed businesses. Crypto bank from Germany was the newest company to close its doors to customers, but have given them preorder notice that it will be closing down in December. Therefore, all of their clients were only given a few months to get out their funds.
Unfortunately, telling clients that the company is shutting down and that they should make preparations accordingly is a rare occurrence. At least two other cases happened this year where Celsius, one of the biggest crypto exchanges in the market at the time, locked all of the accounts of its users indefinitely.
This was the final straw that lead to diminishing customer satisfaction and trust, leading to a domino effect of people leaving the market.
500,000 Users Have to Withdraw Funds before the Shutdown
The bearish crypto market has been relentless with how it maims and takes down all of its crypto companies that do not have much in the way left of proper funding. From poor management to executives getting greedy, there have been a number of reasons why companies have been struggling with the current market.
The crypto bank Nuri made it clear to it is over 500,000 users that it was having serious liquidity issues back in August. In addition, even though many were clearly hoping that the company would pull together at the last minute, Nuri had to send out an email to its many users that they should clear out their accounts before Dec 18.
Closing up Shop
With as little as two months to properly withdraw their funds before the company shuts down, it came as a major blow to the entire community. Given the current state of the market, this was only expected.
They were also quick to mention that all of the money in the Nuri accounts will not be part of the insolvency and are completely safe for people to withdraw.
Could the Bear Market Ease Up Anytime Soon?
As the market continues to struggle under unnerving pressure from the Federal Reserve in the form of interest rate hikes, the crypto market is evolving and is slowly leaving all parts of its old self behind.
As the market is right now, it would be wishful thinking to say that the market will ease up any time soon. The best that investors can do right now is hold on tight.