Bitcoin exchange and wallet provider Snapcard Inc. is leaving the bitcoin business to focus on an alternative blockchain-based payments service.
Snapcard operated as a bitcoin-focused exchange and wallet provider from its launch in 2013, catering to customers in both the United States and Brazil. It then launched Masspay, an enterprise-level application programming interface that allowed companies to send funds worldwide instantly without taking on any price volatility, for a fraction of the cost of traditional bank transfers.
The company doesn’t say how well the blockchain-based Masspay is doing now, but it does say that it has partnered with Fortune 500 companies and is currently “moving millions of dollars on a daily basis,” suggesting that it may be taking off.
“We’ve come to a point where we need to make some decisions on our current product offering and what we’re able to manage,” the company said in a blog post. “Our Masspay product has been aligned with the value that we bring to the community and is something in which we will be investing heavily. With that focus in mind, we’re deeply sorry to announce that we will no longer continue operating the Snapcard platform.”
Although not specifically mentioned, the abandonment of the bitcoin business in favor of the blockchain-focus MassPay product is likely to have come from Snapcard’s investors. The company had raised an impressive (for a bitcoin exchange and wallet provider) $4.45 million to date from investors including Black Green Capital, Blockchain Capital, Boost VC, Fortress Investment Group, Great Oaks Venture Capital, Krillion Ventures, SeedInvest and a number of individuals.
Blockchain-focused companies are hot right now in many industries, not just financial technology. And with the blockchain market expected to grow to $2.3 billion in 2021 according to research firm Markets & Markets, you can understand why the investors would push the company in that direction.
According to an end-of-life schedule notice, Snapcard will first disable buying and selling on March 20, followed by a final shutdown on May 1. Users are advised to transfer their bitcoin balances from their Snapcard wallets prior to the final closure date.