The crypto market, which has seemingly begun to recover from its slumber from last year, is still testing the fates of firms operational in the sector. Coin Cloud, the crypto ATM installer that had claimed to be US’ largest player in the arena last year, has succumbed to the market pressure. In a drastic move, the company has filed for bankruptcy. Around $500 million (roughly Rs. 4,120 crore) have been left in liabilities, as per Coin Cloud’s filings.
Coin Cloud has over 10,000 creditors, said a CryptoPotato report
Genesis Global Trading is Coin Cloud’s largest creditor to which it owes over $100 million (roughly Rs. 820 crore) over an uncollaterised loan.
Cole Kepro, another creditor, is owed $8.5 million (roughly Rs. 70 lakh).
In totality, Coin Cloud claims to have up to $100 million in assets, which is not enough to keep pay back to its creditors that has led the company to file for bankruptcy.
Between September and December last year, the global crypto sector lost $200 billion (roughly Rs. 16,49,940 crore) in the aftermath of back-to-back project downfalls and hack attacks that left investors high and dry.
In between the same time period, the installations of crypto ATMs sunk to a record low, research platform CoinATMRadar had said on January 9.
In fact, only 94 machines were installed in different parts of the world between July 2022 and January 2023 including US, Australia, Canada, and Spain.
In a report last October, CoinATMRadar said that the number of crypto ATMs around the world has dropped from 38,776 machines to 37,980 around that time. In fact, the report had also claimed that nearly 800 ATMs were alarmingly pulled out of the global crypto network in September 2022.
In terms of Coin Cloud’s business, it had installed over 5,000 ATMs across the US and Brazil.
Over 1,000 machines were installed by the company in other nations also.
Its ATM machines facilitated the transactions of a bunch of cryptocurrencies including Bitcoin, Ether, Litecoin, Dogecoin, and Bitcoin Cash among others.
Despite its widespread presence, its business could not make it out of the market turbulence.
FTX, Voyager Digital, and Celcius are other crypto firms that has filed for bankruptcy in recent months.
