The cryptocurrency exchange “Crypto.com” has stated that it will lay off twenty percent of its workforce, citing adverse macroeconomic conditions and the failure of a competing exchange, FTX, as the reasons for the move.
“While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet, we’ve had to navigate ongoing economic headwinds and unforeseeable industry events,” Kris Marszalek, co-founder and CEO of Crypto.com wrote in a blog post on Friday. “While we continue to perform well, growing to more than 70 million users worldwide and maintaining a strong balance sheet,”
The recent upward trajectory that the company was on “shifted suddenly” as a result of a combination of bad macroeconomic circumstances, according to the blog post that was uploaded to the website.
The most recent round of layoffs at Crypto.com comes after the company announced its first layoffs in July of the previous year. The fall of FTX, on the other hand, meant that the funding from that round needed to be increased to see the company through the storm.
“The reductions we took in July of last year positioned us to weather the macroeconomic downturn,” Marszalek wrote. “However, it did not account for the subsequent collapse of FTX, which dramatically eroded faith in the industry.”
Marszalek added that all the affected persons had already been told of the situation. In addition, he made it very apparent that the reductions are “absolutely not associated with performance,” but rather are only associated with the requirement for cost-cutting.
The failure of many of Crypto.com’s competitors generated fear in the market in 2022, which caused the company’s fortunes to suffer along with those of many other crypto-native businesses.
In December of the previous year, the corporation demonstrated that its customers’ assets are completely backed one-to-one by releasing the Proof of Reserves data compiled by the accounting firm Mazars Group. Marszalek described the action as “an important step for the entire business to promote openness and begin the process of repairing trust” when it was taken.
In a message published on the company’s website, he added, “Crypto.com is fully committed to providing clients throughout the world a safe, secure, and compliant way of engaging with digital currencies.” Crypto.com is an online cryptocurrency exchange.
The price of Crypto.com’s own Cronos (CRO) token has increased by a significant 5.3% over the previous twenty-four hours as this article was written, indicating that traders in the market appeared to embrace the news of Crypto.com’s headcount drop.
Nevertheless, there is no denying that the token has endured a difficult year on the market, as its price has decreased by more than 85 percent over the past year to its current level of $0.07.
23 Jan 2023
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