With the crypto winter showing no signs of abating, crypto payment companies Wyre and EmpireDAO have become its latest casualties.
Wyre informed employees about its plans during the holiday season, while EmpireDAO will look to make a “clean exodus” from its Manhattan location.
Wyre To Shut Operations?
As the ongoing crypto winter continues, crypto and Web3 businesses are feeling the pinch. The latest to be impacted are crypto payments firm Wyre, and EmpireDAO, a crypto co-working space that was dubbed as the WeWork of Web3. Founded nearly a decade ago, Wyre recently let go of several employees, with two former employees confirming plans that the company intended to shutter its operations.
According to one former employee who cited an email from the CEO of Wyre, Ioannis Giannaros, the company was planning on liquidating and would terminate services as early as the ongoing month. Employees also revealed that no severance package had been offered to them by the company. However, Giannaros stated that the company was still operating but would be scaling back to plan the way forward.
EmpireDAO Planning A Clean Exodus
More evidence of the market’s downturn was presented in the form of EmpireDAO announcing the end of its tenancy at 190 Bowery in New York. The crypto co-working space was founded by Mike Fraietta, with its office building tapped to become the WeWork of Web3. However, the company is already looking to move, under a year after its opening. The space at 190 Bowery has amassed 1500 members, with 300 daily visitors. The firm is now looking to move elsewhere, with Fraietta stating,
“We tried every which way to get new sponsors, partnerships, and even crowdfunding. But we needed more help to sustain at 190 Bowery.”
Last Ditch Effort
To save its tenancy, Fraietta even attempted a last-minute crowdfunding campaign, aiming to raise around 215 ETH ($260,000.) However, this effort fell short, as the campaign received a lukewarm response. In the end, the effort was able to galvanize a total of 6.27 ETH, which is around $8100. The donations will be returned to the donors with the campaign failing to achieve its target.
The Future For EmpireDAO
With EmpireDAO closing its current location, Fraietta stated that there are plans to reopen at another location for “Season 2.” He also highlighted plans for potential EmpireDAO pop-ups at various crypto conferences and at this year’s SXSW in Austin, Texas. The announcement of EmpireDAO’s closure received several supportive messages from users on the group’s Telegram chat. One user wrote,
“Thank you for opening the doors both literally and figuratively to so many people, projects, minds, and movements.”
Other Companies Feeling The Pinch
The news about Wyre and EmpireDAO comes against the backdrop of an unrelenting crypto winter that has impacted several other startups and seen capital dry up. The underlying blockchain for many projects that worked on EmpireDAO, Solana, has also taken a significant hit, with its native SOL cryptocurrency down nearly 90%. Another recent casualty of the ongoing bear market is crypto investment firm Midas, which announced that it is shutting down its DeFi platform after suffering cataclysmic losses during the Terra, Celsius, and FTX crashes.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.