Singapore-Based Crypto Investment Firm Cake Group Files for Liquidation
Singapore-based Cake Group, the parent company of crypto platform Bake, is winding up its company and has filed for liquidation. According to a Tech in Asia report, the founder of the crypto investment platform U-Zyn Chua has applied to wind up the Cake Group at a Singapore High Court.
Reasons for Wind Up
The reasons for the company’s wind up aren’t clear. However, in September, Bake crypto platform announced layoffs, affecting 30% of its workforce. Bake said at the time that the cuts came as a “result of reorganization brought on by the current bear market and individual performance issues.”
Liquidation Process in Singapore
Winding up of a company in Singapore is a legal process where the court orders to sell company assets to pay debts. The remaining money from the assets collected after settling all debts is then distributed among the company’s shareholders. The liquidation claim is being filed under the Singaporean Insolvency, Restructuring and Dissolution Act of 2018.
Cake Group’s Revenue Slump
Cake Group saw massive growth in 2021 like many decentralized finance (DeFi) platforms. The company released an unaudited financial statement at the time that showed revenue reaching $631 million, year-on-year increase of 1,800%. However, following the massive crash in crypto prices in May 2022 and the prolonged crypto winter, the growth gradually slumped.
Hot Take: Cake Group’s Troubles Highlight Volatility of Crypto Market
The filing for liquidation by Singapore-based Cake Group serves as a reminder of the unpredictable nature of the crypto market. Despite experiencing significant growth in 2021, the company’s revenue took a hit due to the crypto crash and prolonged bear market. This demonstrates the inherent risks and challenges faced by crypto investment firms. As the industry continues to evolve, it is crucial for companies to adapt and navigate through volatile market conditions to ensure their long-term sustainability.
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