Amber Group, a Temasek-based crypto protocol in recent fundraising bags the sum of $50 million from a newly found investment fund. The deal is likely to be announced early in January.
A Crypto trading platform that was struggling to continue its operations has announced that despite securing the $ 50 million, we are unable to continue our expansion plans as of now.
Moreover, the top-tier management of Amber Group has also denied the rumors that the company has filed for support against insolvency.
According to the report published by Financial Times on Dec 9, 2022, claimed that Amber Group has denied all the allegations that following their difficulties amid the collapse of FTX, the crypto trading platform is on the brink of Bankruptcy.
Amber which previously announced that the crypto trading platform will expand its operations to U.S. and Europe has now postponed their plans.
It seems that the current market indicators are not favorable for Amber to grow into the new markets. As of now Amber will only focus on its clients in Asia and make its operations more fluent and sturdy for its customers.
Annabelle Huang Recently Said
Annabelle Huang said that financial troubles are not the main reason that Amber has decided to postpone its expansion.
According to Annabelle Huang, the managing partner of Amber said that the primary reason the company has decided to give up on its metaverse initiatives was the market uncertainty caused by the fall of FTX.
The company is not sure about the future of the market and the fact that how investors will respond to this new initiative.
Rather than making risky financial decisions, the company has decided to focus on its trading initiatives in Asian markets.
The Firm is Also Cutting Its Headcount
Apart from ditching the expansion plans, Amber has also decided to reduce its employees, the reason behind this is Amber wants to make its financial viability more and stronger to say protected against the current market crisis.
As of now, Amber has decided to reduce its workforce by 10%, after reducing its manpower by 40% back in September.
Serving its current customers in Asia is not the only focus of Amber. The cryptocurrency trading platform is also focused on securing more financial support.
According to the top management of Amber, they will continue to make new acquisitions and mergers to deepen their financial resources.
The overall assets being managed by Amber as of this writing are valued at around $Billion. Amber previously had also secured funds worth $200 M.
Even though Amber has had two successful fundraising rounds, but amount Amber managed to secure was only half of the actual amount they decided to raise through these fundraising rounds.
However, Huang sees things differently, she said that the current fundraising rounds are no way near what they looked, but the current performance is not unsuccessful by any means.
Moreover, she added that Amber is not under any financial pressure, and neither the company has filed for any protection against bankruptcy.
She also said that moving forward Amber will announce the successful purchase of a renowned Singaporean business this month.
This news of acquiring the new business just appeared in the news after Huang discredited all the bankruptcy allegations being made against Amber.
Market analysts on the other side do believe that the current bearish trend following the demise of FTX will continue to reshape the outcome of the crypto marketplace globally that’s why the current decision of postponing the expansion in the U.S. and Europe is a wise decision made by Amber.
Amber’s managing partner Huang also said that they will continue to operate as usual. If anyone is afraid of insolvency then funds are open to withdrawal.
There is no need for Amber to hide anything from anyone. Delaying the expansion is a strategic decision, nothing more than that.