On Jan 5, information from an internal memo cited that DCG is shutting down its wealth management subsidiary, HQ Digital. DC Group is bringing their subsidiary firm down after less than a year of operation. As per the reports, the main reason behind the closing of HQ digital is the broader economic environment and the prolonged crypto winter.
DC Group takes another hit
Last Thursday, Digital Currency Group, also known as DCG, announced that they would shut down their wealth management division known as HQ digital. According to them, the FTX-induced crypto winter is to be blamed for this development.
However, the DCG is not all done with this firm, as it released a statement stating that they are shutting down the firm due to the border economic government and prolonged crypto winter. But, they are proud of the team’s work and look forward to potentially revisiting the project.
This is the second biggest blow to the DC Group in the last two months, as Genesis Capital is also struggling to remain afloat over the last couple of weeks following the halt on withdrawals from its platform in November 2022. Moreover, the company’s Global Trading Divison has also reduced its manpower, having laid off about 30 per cent of its workforce this month.
DCG CEO Barry Silbert received a lot of criticism from Gemini founder Cameron Winklevoss this week for making the matter much more difficult for its firm. In an open letter on Monday, Winklevoss called on the executive and bashed the company for failing to return the money Genesis owes to the Gemini Earn users. However, the DCG head was seen refusing this allegation, stating that their company was cooperating.
Crypto winter is still here
Bringing down more and more companies, the FTX-induced crypto winter is still here and has not left the market yet. The collapse of the fraud crypto exchange, FTX, has fueled the fire, resulting in the crypto market losing over 255 billion USD in November 2022, then another 75 billion USD in December, eliminating all the chances of recovery last year.
At the time of writing, the total crypto market capitalisation stands at 776 billion USD, almost 23 per cent below its pre-FTX collapse level of 1 trillion dollars. The possibility of recovery is not apparent either since any recovery was invalidated soon after.
What are your thoughts as DCG is shutting down its wealth management subsidiary, HQ Digital? Which companies do you think the crypto winter will bring down? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
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