In this article, we will be taking a look at 5 crypto companies hit by the recent crash. To read our detailed analysis of the crypto industry, you can go directly to see the 10 Crypto Companies Hit By The Recent Crash.
5. CoinFLEX
CoinFLEX was founded in 2019 as the world’s first physically delivered futures exchange. However, in light of the recent crypto winter, it temporarily halted all withdrawals in June because of its financial troubles.
While CoinFLEX halted all withdrawals less than a month ago in June, it has since announced that it plans to reclaim $84 million in owed funds. It is also partially reopening user withdrawals capped at 10%, leaving the remaining 90% of user balances as locked funds that still cannot be withdrawn or traded. This situation highlights how CoinFLEX has only become one of the companies hit by the recent crypto winter.
The move to halt all user withdrawals came after a counterparty defaulted on a $47 million margin call. CoinFLEX’s shortfall has also been estimated to stand at $84 million.
4. Babel Finance
Babel Finance is a Hong-Kong Based cryptocurrency lender and financial service provider. The company offers professional cryptocurrency asset financial services to its customers. The company halted all user withdrawals in June.
After its announcement halting user withdrawals, Babel Finance disclosed that it was hit by unprecedented liquidity issues because of the volatile crypto market conditions. Since then, the company has reached an agreement with several counterparties to receive payments for some debts that may ease its liquidity issues.
However, the company has not yet allowed user withdrawals to be made again. Babel Finance is one of the many crypto companies that have been hard hit by the crypto winter, resulting in billions of dollars being made inaccessible to investors.
3. BlockFi
BlockFi is one of the world’s leading cryptocurrency companies, founded to provide credit services. The company offers consumer financing services and loans to crypto asset owners. It also provides risk management, financial technology, and digital financing solutions.
Having suffered a loss of $80 million due to bad debt from Three Arrows Capital, the company can now be called one of the crypto companies hit by the crypto market downturn. This June, BlockFi also made an announcement that the company would terminate 20% of its workforce.
The company could not avoid the fallout from Three Arrows Capital’s collapse, as it had suffered a huge loss from 3AC’s bad debt. BlockFi also announced that it would no longer accept Grayscale Bitcoin shares as collateral because of its exposure to Three Arrows Capital’s downfall, as the latter had once owned over 5% of the Grayscale Bitcoin Trust. FTX has since agreed to purchase the hard-hit BlockFi for $240 million.
2. Uprise
Uprise is a cryptocurrency company based in South Korea. It provides Heybit, a digital asset finance service alongside Iruda, a global ETF investment service.
Having lost $20 million on July 7th, the company has become one of the worst-hit companies in the current crypto winter. The $20 million figure that Uprise lost this July equated to over 99% of its asset worth. This loss was attributed to the company shorting the Terra Classic native token, LUNC. The company has since been liquidated after losing almost all of its customers’ assets.
Uprise also lost about $3 million of its own funds, adding up to the 99% loss in its assets. The company has suspended services because of its failed shorting operation.
1. Coingate
Coingate is a crypto company based in Vilnius, Lithuania. It provides customers with a platform to buy and sell a range of crypto assets with a single payment. The company has recently ceased all operations in the US due to the volatile market conditions.
By ceasing all US operations, Coingate became another victim of the recent crypto winter. The announcement for ceasing all US operations was made on July 14th. Coingate further advised all users to withdraw their funds before July 19th.
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