UNBNK Token Plummets 85% as Unbanked Accounts Close

UNBNK Token Plummets 85% as Unbanked Accounts Close

Unbanked, a crypto-focused financial services provider, is shutting down due to a lack of funding and the challenging US regulatory environment, causing the UNBK token to crash.

Financial services provider Unbanked announced that it will shut down, leading the UNBK crypto token to collapse. The company has a lack of financing and is facing a tough time with the United States regulatory landscape.

Crypto-focused financial services provider Unbanked has announced that it has been forced to shut down. The company was released a post on May 26 saying that it was winding down, citing the regulatory environment and a lack of financing as the primary reasons for the decision.

Unbanked Hit a Brick Wall

The post stated that “the cryptocurrency landscape 5 years ago was very different from today” and that “ United States regulatory authorities are actively attempting to stop corporations (banks and fintechs) from supporting cryptocurrency assets – even when the corporations are attempting to do it correctly and by the book.”

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It likewise indicated that it had signed a term sheet for an financing of $5 Million dollars at a $20 Million valuation. It has not is still received these funds, but Unbanked will continue operations and expand if it does come through. Furthermore, it is likewise exploring other financing sources.

The company has requested customers to withdraw their funds as quickly as possible. Customer funds are maintained separately from business funds, and the withdrawal functionality will be open for the following 30 days.

The company likewise has a crypto token, UNBNK, which has decreased sharply following the notice. The crypto token is down by over 85 percent and is as of now priced at $0.0002738.

Unbanked was a financial services provider that offered such services as worldwide bank accounts and cards. It likewise offered the  potential to buy and sell cryptocurrency and staking rewards.

Launched in 2019, Unbanked served both United States and international entities and had 25 corporations in plenty of countries using its services. It managed to raise $4 Million over the span of 5 years.

United States Regulatory Action Forcing Cryptocurrency Corporations To Shut Down

The  United States has been cracking down on cryptocurrency corporations, forcing them to exit or shut down. Even exchanges as large as Coinbase Crypto exchange have spoken about potentially relocating headquarters.

Beaxy and Bittrex are two other examples of platforms that have been forced to shut down or exit. The latter indicated that it shut down its United States cryptocurrency exchange as a result of the regulatory environment. This appears to be the common point of contention, namely that the regulatory landscape is unfavorable.


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