German Neobank NURI Declared Insolvent
Another day another company calling time on their ability to operate, this time we head over to Germany with Nuri, some may know it as Bitwala, which launched in 2015 and then alter rebranded in 2021 and that didn't last very long as they now declaring insolvency in 2022.
Nuri filed for insolvency today, August 9 but unlike some recently insolvent crypto platforms like Celsius which still holding peoples funds ransom. Nuri is not planning to deny services to its customers. Users will have guaranteed access to deposits and withdrawals, and Nuri’s services will continue to operate.
Nuri does not hold most funds itself and only facilitates transactions.
It maintains a partnership with the German fintech bank Solarisbank AG in order to manage its users’ Euro deposits.
While on the crypto side Solaris Digital Assets GmbH (SDA) manages the exchange’s custodial crypto wallets, while Bankhaus von der Heydt handles Nuri Pot funds.
Throwing anything at the wall and seeing if it sticks
The company also cited a whole lot of reasons from the Ukraine war, to Covid, to the EU raising interest rates for the first time in 10 years and ofcourse the collapse in the crypto industry involving Celsius and Terra as concerns.
Apart from a relationship with Celsius that affected Nuri's Bitcoin Interest Account last month, Nuri did not state whether it had exposure to the broader crypto industry.
Shit gets deeper
The longer time goes on and inflation rages on, central banks have to keep interest rates high or increase them. This makes it harder to roll over your debt, raise capital and it drys up liquidity and the weakest businesses will weed themselves out.
We've moved from one of the craziest bull markets runs in terms of size of liquidity into QT and risk assets are hitting the wall, and those that bet on them as a business model are paying the price for their poor calculations and lack of hedging.
I don't think this was the last insolvency and we have plenty more on the way, all central banks around the world have a mandate to bring inflation under control and since they only have on leaver, they have to destroy businesses and jobs to destroy credit and reduce demand.
If you have funds on an exchange, cash it out either to fiat if you're a little baby back bitch or take it in bitcoin and self custody your funds.
Sources:
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Sad that I missed my chance to grab the little bit of bitcoin I had on Celsius out but I’m just glad I got the bulk of it out when I did. Almost lost a decent chunk! I know a guy who lost 7.5 Eth to Celsius those pricks.
It’s funny it’s almost like a script, blame everything under the sun for the reason you are shutting down except having good business practices and things in place to weather downturns.
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Im sorry to hear you got your fingers burned but i hope it taught you to trust no one with your money, ouch thats a fair bit, I know a guy who lost all his crypto btc and shitcoins on Celsius because he was chasing that yeild, dude is devastated won't even talk to me anymore lol
Another crypto crash… this bear market is taking many victims. thank you for always keeping us updated
There is more to come, of that I have no doubt, just this week there was another rug pull lol makes it easy to keep creating content with all this drama going on
I expect there will be many more to come. I expect this will all play out much like the infamous "dot com bust" of the early '00s.
"Vaporware" and sketchy ideas may fly when the going is good but tends to fall apart when things get rough.
=^..^=
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