{"id":367726,"date":"2023-01-05T07:06:15","date_gmt":"2023-01-05T12:06:15","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=367726"},"modified":"2023-01-05T07:06:15","modified_gmt":"2023-01-05T12:06:15","slug":"wyre-ceo-moves-to-quell-closure-rumors","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/wyre-ceo-moves-to-quell-closure-rumors","title":{"rendered":"Wyre CEO Moves To Quell Closure Rumors"},"content":{"rendered":"

Crypto Payments Company<\/span> Wyre<\/span><\/a> CEO Loannis Giannaros has downplayed claims that his company is planning to shut down operations this month, according to a<\/span> report<\/span><\/a> by Axios.<\/span><\/p>\n

The rumor followed an alleged email that the CEO sent to his employees telling them that he is liquidating the company, alongside plans to terminate the services this month. Giannaros deflated claims of a shutdown in a subsequent email that read:<\/span><\/p>\n

We’re still operating but will be scaling back to plan our next steps.<\/span><\/i><\/p><\/blockquote>\n

Michael Staib, formerly the technical engineer at Wyre,<\/span> posted on his LinkedIn profile<\/span><\/a> on December 31, 2022, saying:<\/span><\/p>\n

Wyre won’t continue as a profitable business.<\/span><\/i><\/p><\/blockquote>\n

Noteworthy, the employees have been granted anonymity as the company has not authorized them to speak about the matter.<\/span><\/p>\n

Giannaros has not commented about the claims of his alleged former employees, with one of them disclosing that the company has not “yet” offered a severance package. Nevertheless, several news sites have reached out to the crypto payments firm for comment.<\/span><\/p>\n

Cryptocurrency Payments Company Wyre is 10 years old this year and had a $1.5 billion price tag at its peak- at least, which was the price<\/span> agreed<\/span><\/a> for its acquisition by American checkout and shopper network company Bolt on April 2022, five months before the deal was discarded in September.<\/span><\/p>\n

Wyre-Bolt Deal Falls Through<\/b><\/h2>\n

Despite the Wyre-Bolt deal being scrapped, the two firms agreed to remain in the partnership with the belief that operating as independent organizations while remaining partners will allow them to focus on their respective core competencies to deliver value to customers.<\/span><\/p>\n

Wyre and Bolt also signed “a commercial agreement […] to implement Wyre’s one-click solution for the Bolt customer platform.” The deal was supposed to be executed in cash and stock, but investors were wary of Bolt’s lofty $11 billion valuation amid a broader fintech selloff and rising doubts about the health of the one-click-checkout business model.<\/span><\/p>\n

After the deal fell through, one of Wyre’s founders, Michael Dunworth relinquished his position from the company, receiving 12.5% of his holdings at the company soon after tech platform Bolt failed to acquire the firm in September 2022. In a<\/span> statement<\/span><\/a> by Dunworth, the ex-executive said that crypto market volatility and general market conditions in tech were the main reasons for the deal falling through.<\/span><\/p>\n

Fintech writer, Noah Weidner, suspects that the company may have experienced balance sheet issues beginning in September.<\/span><\/p>\n

\n

My understanding is that Wyre could be shutting down, or could have some balance sheet issues.<\/p>\n

They were supposed to be acquired by Bolt for $1.5 billion, but that deal was called off in September.<\/p>\n

— tired noah 🍋 (@gdpgeneration) January 3, 2023<\/a><\/p><\/blockquote>\n