One of the first companies to push Bitcoin adoption, especially in the retail sector, will soon be closing its doors. Purse.io has announced it will be dissolving the company.
A Bitcoin payment processing company for Amazon since 2014, Purse.io finds that it cannot sustain its business model any longer.
Purse.io Closing Shop
Purse.io was one of the first companies pushing for consumer-based adoption of Bitcoin. It offered Amazon shoppers a means to make purchases with BTC for a discount.
Despite being a ‘first mover’ in this sector, the company is calling it quits.
We've made the very difficult decision to dissolve the company. We're grateful for the opportunity afforded by our supporters to build products and services for the cryptocurrency community.
— Purse (@PurseIO) April 16, 2020
Purse.io’s model was simple — the platform allowed users to trade in their Amazon gift cards for BTC. This enabled it to then offer discounts to its customers.
It seems that profitability for Purse.io was sorely lacking. Despite being around since 2014, the company is folding in 2020. In a tweet made by the company, Purse.io said that it would continue to offer withdrawals and support until June 26.
We will continue to offer support for ongoing orders and withdrawals until June 26, 2020, to ensure all transactions and accounts are settled.
— Purse (@PurseIO) April 16, 2020
Last June, BeInCrypto reported on a tweet from Purse.io where the company harshly criticized Bitcoin SV (BSV).
The Struggles to Remain Profitable
The blockchain sector is notoriously difficult for companies and startups since profitability is often based on future expectations. Now, with the COVID-19 economic downturn, some cryptocurrency-related firms are concerned over how it will impact their bottom lines. It’s unclear whether Purse.io shut its doors due to longstanding issues or poor earnings in the past quarter.
Cryptocurrency exchanges are often most at-risk. In August 2019, an investigation found that 97% of cryptocurrency exchanges in South Korea were close to going bust.
As some commentators noticed, exchange bankruptcies were the ‘failed ICOs of 2019.‘ Some even outright scammed users.
With a real economic crisis on the horizon, we may now start to see ever more cryptocurrency-related firms shutter as well. Their fates likely depend on how quickly the global economy is able to recover and where the sentiment towards digital currencies lands when we come out of the other side.