Nuri, the famous German blockchain neobank, has recently announced devastating news to its customers, explaining the reasons behind its pending termination and liquidation in December since its launch in October 2015.
Having been operating and rendering its services to blockchain members in Germany and worldwide for seven years, Nuri has announced its closure due to its insolvency. The neobank is famous for being the first crypto bank account, allowing Germans and Europeans to partake in its services and make seamless transactions through the bank.
Although the company has stated in its press release that its customers can still make transactions such as deposits and withdrawals on its platform till 30/11/2022, This is enough time for those invested in the crypto exchange company to pull out their funds and savings before Nuri officially closes down on December 18, 2022.
What Is Nuri?
Founded by Jan Goslicki, Jörg von Minckwitz, and Benjamin P. Jones, in the name of Bitwala, Bitwala was proposed to power Bitcoin transactions to 22 countries along with a prepaid debit card.
Bitwala was the epitome of easy transactions between cryptocurrencies and banks; as it later transcended into Nuri, the exchange company introduced tools that would enable its customers to save and grow their money. Nuri offered a chance to earn 3% yearly on the customer’s Bitcoin, empowering users to expand their monetary future.
Reasons For Nuri’s Liquidation
The business world has seen a decline since the 2020 pandemic. This decline has greatly affected cryptocurrencies, startups, and fintech. Nuri isn’t excluded from this list, as the crypto exchange company has been incapable of raising funds or acquiring investors to assist in its growth and expansion.
The CEO of Nuri, Kristina Walcker-Mayer, explained that the insolvency of one of Nuri’s primary branch businesses contributed to the chain reaction, leaving the company to announce its closure. On August 9, 2022, Nuri first filed for insolvency temporarily. During this period, it faced difficulties finding investors and sponsors but couldn’t acquire any.
In light of this event, Nuri has asked its customers to withdraw all funds before the company becomes liquidated. Since it has been battling insolvency, Nuri has assured its customers that all their funds, savings, and investments have been left untouched by the company and are still very much intact.
Till its closure, all services on Nuri are available to the clients and will remain so until November 30, 2022. However, the customers have been implored by CEO Kristina to withdraw their funds before the specified date. However, should they fail, there is no need to panic as the funds can be removed by contacting the necessary officials and following a procedure.
Insight Into Recent Crypto Companies’ Decline
Nuri isn’t the first and only company to experience liquidation or go bankrupt this year. Here is an insight into a few crypto companies which have also had to deal with the negative impact of economic decline these past months:
1. Terra/LUNA Collapse
Terra’s native coin once claimed a position among the top ten cryptocurrencies before erasing billions of dollars in value within days and leaving its investors shattered. The famous stablecoin LUNA/UST sell-off was an alarming tragedy that frightened everyone in the crypto world about the future and certainty of stablecoins.
Recently, Coinbase, the largest US crypto exchange, reduced its workers, laying off 1,100 workers and cutting down its workforce by 18%. This action was taken to secure its position in the industry with the economic meltdown in crypto. The CEO of Coinbase, Brian Armstrong, disclosed the many reasons for this decision, highlighting and claiming full accountability for this layoff.
3. Three Arrows Capital
The Singapore-based hedge fund filed for bankruptcy and liquidation earlier in July 2022. The company was one of the affected companies which had placed its faith in the Terra ecosystem. Three Arrows Capital was, therefore, unable to pay off its loans which it had accumulated, and was forced to declare bankruptcy and liquidate.
Many crypto projects, companies, and investors have all collectively witnessed the economic downturn in the crypto world, facing multiple challenges and losing billions of dollars in value of their savings. Nuri, a German crypto exchange neobank, is the latest company to declare bankruptcy and has announced its termination by year’s end. Its CEO has warned all investors and holders to withdraw their savings before the deadline.