Recently, the cryptocurrency bank Juno gave its customers advice on how to manage their own holdings. As the company works to transfer client funds to a new custodian, Juno clients are urged to handle their digital assets themselves or sell them for cash.
This action reportedly came after Juno's current manager disclosed that Wyre would be liquidating and cutting its operations. Additionally, services will be offered in January 2023.
Since FTX's demise, the cryptocurrency market has been experiencing a crisis, with a number of businesses, funds, and projects experiencing liquidity issues. Many businesses have been forced to declare bankruptcy and select liquidation options.
“We are switching custodians because we expect potential issues with Wyre given they might be scaling back or winding down,”
-Deshpande told CoinDesk.
Varun Deshpande, the CEO and co-founder of Juno, has disclosed that the business is looking for a new manager. Within the next two weeks, all client monies will have been transferred from Wyre to the new custodian.
Wyre, which was once valued at $1.5 billion, has since faced many challenges. One-click payment provider Bolt abandoned a merger deal with the business in September. Then, according to a December Axios report, Wyre allegedly informed staff members that the company will dissolve and end its operations in January.
The October 2022 crypto checking account provider Juno raised $18 million in Series A funding, released a native token, JCOIN, as part of its encrypted loyalty program, and is providing token airdrops to current customers.
As part of the launch of its first encrypted loyalty program, the company also introduced JCOIN, a native cryptocurrency. Only confirmed account holders will receive JCOIN. When a Juno member uses their Juno debit card to buy cryptocurrency, they can earn JCOIN.