Jump Trading Elevates Wormhole Cross-Chain Bridge to Independent Business
Date: 2023-11-21 Author: Dima Zakharov Categories: BLOCKCHAIN
Breaking Free: Wormhole’s Independence
Jump Trading, known for its prowess in trading, has taken a bold step by establishing the cross-chain bridge Wormhole as a separate business entity. Bloomberg reports this significant move, highlighting the company’s strategic shift.
Acquisition and Restructuring
In 2021, Jump Trading acquired Certus One, the crypto firm behind Wormhole, which was initially part of Jump Crypto. Recent developments reveal that key figures, including CEO Said Badreya and COO Anthony Ramirez, have departed to lead Wormhole independently.
Workforce Changes
While the exact number is unknown, Bloomberg’s sources suggest a substantial reduction in Jump’s cryptocurrency division, nearly halving its workforce from the peak of 150 employees in 2022.
Security Breach and Recovery
In early 2022, hackers exploited the Wormhole cross-chain bridge, siphoning off 120,000 WETH (approximately $320 million at the time). Within a day, Jump Crypto reimbursed the losses incurred by the project. Fast forward to February 2023, and the company successfully recovered the stolen digital assets using the DeFi platform Oasis.
Shifting Focus in the Cryptocurrency Industry
Recent months have seen Jump Trading gradually decreasing its presence in the cryptocurrency industry, citing low trading volumes despite market growth. However, the company is closely monitoring the potential approval of SEC spot cryptocurrency ETFs and anticipates reinvigorating its digital asset business in such a scenario.
Diversification and Future Prospects
While reducing its crypto activities, Jump Trading aims to diversify its portfolio by becoming a market maker for BlackRock’s Bitcoin fund, pending regulatory approval. Court documents from May revealed that the company earned around $1 billion through a 2022 agreement with Terraform Labs to support the TerraUSD (UST) exchange rate.
Navigating Challenges
After the Terra ecosystem’s collapse, Jump Crypto employees underwent questioning during a U.S. Department of Justice investigation. Notably, no charges were filed against them.
Financial Setbacks
According to journalist Michael Lewis, the market maker incurred a loss of $206 million due to FTX’s bankruptcy.
Regulatory Uncertainty and Trading Suspension
In May, Jump Trading announced the cessation of cryptocurrency trading activities in the United States, citing regulatory uncertainties as the driving force behind this decision. The company remains vigilant, awaiting regulatory clarity for potential future engagements in the digital asset market.
