August 28, 2014
Although there always have been discussions about new startups, there is rarely talk about what happened to the ones that fell by the wayside. This is not an exhaustive list, but we want to discuss why some payment companies went out of business despite still receiving money from investors.
The reasons that many of the payment companies mentioned here went out of business have not been disclosed. Those that have been revealed vary in nature, but a common one is nonacceptance on a wider scale. A noneffective business model can be blamed in such scenarios. Another reason that can be deduced is that the companies mentioned here provided very specific services for niche markets. This could have affected the mass adoption of their services.
The CEO of the company, a New York-based Bitcoin exchange, was arrested in January, charged with money laundering for associating with a Silk Road user. Silk Road is the deep-web black market. The CEO, Charlie Shrem, was accused of selling over $1 million in bitcoins to Silk Road users. The company became nonoperational ...