British institutional crypto custody startup that raised 75 million dollars targeting the safest end of the market and was devastated when institutional appetite for crypto evaporated.
Evaluating only Copper’s profile at its peak — without knowing the outcome — the model ranked Market collapse as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Copper founded
LAYOFF
Market downturn forces cuts
SHUTDOWN
Zombie Startup: Copper ceases operations
Full Analysis
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Documented cause
Copper raised $75M from Dawn Capital and others to build institutional-grade custody and prime brokerage services for crypto funds and asset managers. The company positioned itself as the safe, regulated option at the peak of institutional crypto interest in 2021-2022. The FTX collapse in November 2022 triggered mass institutional withdrawal from crypto. Copper cut more than 50% of its workforce in 2023. With institutional crypto AUM collapsing 70%+, there was simply no market for institutional custody services at scale.
Lesson
“Institutional services for crypto depend entirely on institutional appetite for crypto assets. When that appetite collapses due to contagion from a single scandal, even the most compliant and regulated service providers lose their market.”