The crypto market, which seems to have recovered from its slumber of last year, is still testing the fortunes of companies operating in the sector. Coin Cloud, the crypto ATM installer that last year claimed to be the US’s biggest player in the arena, has succumbed to market pressures. In a drastic step, the company filed for bankruptcy. According to Coin Cloud’s filings, around US$500 million (approximately Rs.4,120 billion) in liabilities are outstanding.
Coin Cloud has over 10,000 creditors, a CryptoPotato said report
Genesis Global Trading is Coin Cloud’s largest creditor, to whom the company owes over US$100 million (around Rs.8.20 billion) via an unsecured loan.
Cole Kepro, another creditor, is owed $8.5 million (approximately Rs. 70 lakh).
In total, Coin Cloud claims to be worth up to $100 million in assets, which isn’t enough to sustain the payback to its creditors that the company has led to declare bankruptcy.
Between September and December last year, the global crypto sector lost $200 billion (approximately 16,49,940 rupees) in the wake of back-to-back project crashes and hacking attacks that left investors stranded.
In between, during the same period, the installations of Crypto ATMs The research platform CoinATMRadar fell to a record low called on January 9th.
In fact, between July 2022 and January 2023, only 94 machines were installed in different parts of the world including the US, Australia, Canada and Spain.
In a report last October, CoinATMRadar said the number of crypto ATMs around the world had dropped to 37,980 at the time from 38,776 machines. In fact, the report had also claimed that nearly 800 ATMs were alarmingly pulled from the global crypto network in September 2022.
Regarding Coin Cloud’s business, over 5,000 ATMs have been installed in the US and Brazil.
The company has also installed more than 1,000 machines in other countries.
Its ATMs facilitated transactions of a number of cryptocurrencies, including Bitcoin, ether, Litecoin, DogecoinsAnd bitcoin cash among other.
Despite its nationwide presence, the business was unable to escape the market turbulence.
FTX, Voyager DigitalAnd Celsius are other crypto firms that have filed for bankruptcy in recent months.
