Purse.io goes from shutting down to getting acquired

Getting your Trinity Audio player ready...

Purse.io seems to have found a new lease on life. Having only recently announced its plans to close and halt operations, the digital currency (BTC) payments facilitator says it is now reconsidering its decision because of “an incredible outpouring of support from the community.”

As reported by CoinGeek, the company, known previously for offering Amazon shoppers a handy workaround and discount for paying with BTC, had initially said it would be deactivating its “shop and earn” feature on April 23 and completely cease all operations by late June.

In its recent update on their blog, Purse explains that since announcing its intentions to shut down, the overwhelming response from the community has drawn the company to “reconsider its decision”:

“Several parties – including well-known Bitcoin advocates, high volume users, and established cryptocurrency companies – reached out with interest in acquiring purse.io.”

 ​On social media platforms, several users said that the role Purse played in facilitating peer-to-peer (P2P) BTC transactions was key to their positive experience with digital currency.

Recognizing the community response on its decision, Purse has ultimately decided to keep its “shop and earn” function and request the public to wait for further announcements. Simultaneously, the team at Purse revealed its current efforts of vetting new ownership for the platform.

Apart from its released company statement, company support manager Eduardo Gomez shared the promising prospects of Purse.io on Twitter where he appeared enthusiastic on its future announcing:

Here's a new update with the latest developments on the future of the company.https://t.co/qhSZZBt2y8 https://t.co/FoOOW0nWxM

— Purse Media Group: Crypto Newsletter & Blog (@PurseIO) April 23, 2020

​Gomez declined to go into the details on which of the big names in the digital currency ecosystem are looking to acquire Purse.io hence the sudden strategic change. 

This left observers speculating whether Bitcoin.com CEO Roger Ver would be a potential purchaser of the company. Ver posted a video earlier this week saying that he was in talks with Purse.io given their significance at this point: ​“Purse is too important for the ecosystem to let disappear. I don’t think [Purse] is going to go anywhere.”

​Ver was previously listed among Purse’s investors, which also includes other notable names in the sector, such as James Wo, president of Huiyin Blockchain Venture, and Bobby Lee, co-founder and former CEO of BTCC. Ver’s other ventures e.g. Bitcoin.com have not fared well as of late so Purse.io leaders should be cautious before entering any agreements. 

If Purse.io does find a new lifeline, they will have to figure out a more sustainable profit model instead of just relying on the BTC hodl community to make transactions. Most in that community see BTC as the digital cousin of gold instead of as a medium of exchange. If Purse’s leaders continue focusing on the wrong things, they will only be prolonging the startup’s inevitable closure.