The company is attempting to maintain its viability by taking several actions, the most recent of which is the adjustment of the withdrawal policy.
The provider of crypto payment services, Wyre has a daily withdrawal limit in place, and the company has informed its customers that they will only be able to take out up to 90 percent of their cash. Twitter (1) was the medium through which the company disseminated the news of the updated withdrawal policy.
It stated (2),
"While customers will continue to be able to withdraw their funds, at this time, we are restricting withdrawals to no more than 90% of the funds currently in each customer account, subject to the daily limits that are in place." In light of this, withdrawal requests exceeding the above limit will be denied.
The company also disclosed alterations to the composition of its management team. Stephen Cheng, the company's former Chief Risk and Compliance Officer, has been promoted to the position of interim CEO. In the meantime, Ioannis Gianna, the company's former chief executive officer, will assume the job of executive chairman.
Reasons for the Cap
The company is attempting to maintain its viability by taking several actions, the most recent of which is the adjustment of the withdrawal policy. The company has stated:
"We are currently looking into different strategic options for our company that will enable us to navigate the current market environment and deliver on our mission to simplify and revolutionize the global payments ecosystem."
Following the publication of rumors indicating that Bolt Financial's planned purchase of Wyre had been unsuccessful, the company terminated the employment of seventy-five people. One of these individuals, who talked anonymously to Axios, revealed that no severance payment was involved in this decision. Another person pointed out that the chief executive officer had discussed the possibility of closing the business.
When asked for his thoughts, Ioannis Gianna provided the following explanation:
"We continue to conduct business but will be cutting back to prepare our next actions better."
Could It be End of Wyre?
Wyre was established in 2013; therefore, this event can mark the end of an era for the company. It has already seen some of its collaborations' beginning the end. The collaboration between MetaMask and Wyre came to an end last week, which resulted in the removal of Wyre from MetaMask's mobile payments aggregator. In addition, MetaMask is now attempting to eliminate Wyre from its extensions.
If Wyre is destroyed, it won't be by itself, regardless of whether or not this is the end. Topps, in the business of collecting NFTs, will be one of the companies that would be hit particularly hard.
Topps has temporarily halted all NFT operations on its system and has informed its users that the company is evaluating the current situation with Wyre. On the other hand, the company has assuaged the concerns of its clients by assuring them that the collections have not been compromised in any way.