Wednesday, October 5, 2022

Nuri GmbH Files For Insolvency Amidst Bearish Market

Berlin blockchain financial service provider, Nuri GmbH has approached a court in Berlin to file for insolvency.

According to the company’s statement, the move was blamed on the sell-off and prevailing crypto bearish market. The bankruptcy of Celsius network which happened a few weeks ago was also mentioned. Although the German crypto exchange believes that this step is necessary to ensure the safety of its customers.

The market atmosphere after the global Coronavirus pandemic has left many economies daunted. Hitting harder was the Russian attack on Ukraine which led to political discrepancies influencing the markets. Not forgetting the strong crash of the Luna/Terra protocol. All these contributed to the bearish downtrend of the crypto market.

During the downtrend, Celsius and many other cryptocurrency exchanges had to suspend withdrawal, deposits, and several trading offerings. Unlike those exchanges, Nuri GmbH is still making deposit and withdrawal options open to its customers. It openly declared that its customer’s funds, services, and investments are not affected by this insolvency. The insolvency is clearly temporary.

Nuri GmbH was previously recognized as Bitwala, an app service that assists users to manage, save and invest their funds. It was established in 2015 with its headquarters in Berlin. 

The safety of the customer’s funds in their Nuri accounts was achieved by the exchange’s partnership with Solarisbank AG. Solarisbank AG is Europe’s largest financial technology company based in Berlin with a German banking license.

Eventually, Nuri GmbH is optimistic that after the temporal insolvency, the restructuring process which will follow will well suit the long-term goal of the exchange. 

Bearish Market Pulls Down Many Crypto Firms

Like Celsius, Singaporean crypto lender Vauld suspended deposit, withdrawal, and trading transactions on its platform. The CEO of the lending firm attributed the situation to a combination of events which include market volatility. Babel Finance, another player in the crypto lending industry surrendered to the crypto winter and halted all withdrawals.

Just yesterday, Hodlnaut, an Asian crypto lender announced that it was putting a pause to all withdrawals on its network. Common to all these crypto firms is the ongoing market conditions that are currently bearish.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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