Author
Babafemi Adebajo
An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
Crypto payment platform Wyre has removed its withdrawal cap after securing additional funding from a strategic partner. Recall that a few days ago, Wyre imposed a 90% withdrawal limit on its users. The company also laid off 75 employees and announced changes to its managerial structure.
Emerging reports suggested that the crypto winter was giving the company a tough time and its collapse was imminent. The company also cited market conditions as its reason when it announced the withdrawal cap.
However, the firm noted that it was in “the best interest of our community,” to set the withdrawal cap at the time. CEO Ioannis Gianna said noted the firm was scaling back operations to plan its next steps. In the wake of the rumors, MetaMask severed ties with the company, removing the platform from its mobile aggregator and browser extension. It also advised its users to stay away from the platform.
Withdrawal Cap Gone: Business Back to Usual
However, Wyre has assured the crypto community that it is ready to resume regular operations. The company noted it received funds from an unnamed strategic partner. “This additional capital will help us continue to deliver on our mission to simplify and revolutionize the global financial ecosystem,” it added.
Following the funding, Wyre removed the withdrawal cap and noted it would begin receiving deposits and withdrawal requests. “As a regulated financial institution, we’re proud that we were able to continue delivering our services in a safe and sound manner without pausing withdrawals,” it added.
Today’s announcement suggests that the company’s financial situation may have improved despite the insolvency reports. However, user confidence is at an all-time low.
VeVe Users Decry Return to Wyre
After Wyre announced a limitation on withdrawals, digital collectibles firm VeVe suspended payouts and crypto pay-in requests. Following Wyre’s latest announcement, it said that they “will be assessing Wyre’s capability to resume all services and support before re-enabling Payout.”
However, VeVe users have decried this move, suggesting that VeVe should seek out other payment providers. One user, @BitcornioGoat said, “That is a red flag… we would rather wait a bit longer for payout, so you can hire a better, more reliable payout partner that will be reliable for the long run.”
Read more crypto news on our website.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
