As this cryptocurrency exchange-turned-investment platform attempts to weather a bout of market volatility and declining asset values, it is laying off nearly a third of its workers.
As a part of cost-cutting measures announced in response to the shaky market climate, Peter Thiel-backed Bitpanda GmbH would trim headcount from over 1,000 to roughly 730. The largest cryptocurrency, Bitcoin, has lost roughly 70% of its value since hitting an all-time high in November.
“We need to make fundamental changes in how we operate and sharpen our focus by getting back to the basics,” Bitpanda said in a letter to employees posted on its website. The company said it will focus on “safety and compliance, user experience, education and community, while deprioritizing everything else.”
The employment cuts follow similar ones made across the industry, notably at BlockFi Inc., Gemini Trust Co., and Coinbase Global Inc. When the Vienna-based business raised $263 million in August, it included funding from Thiel’s Valar Ventures, billionaire investor Alan Howard, and REDO Ventures, valuing it at $4.1 billion.
In light of the hazy future, Bitpanda stated that it was attempting to maintain its financial stability and wanted to continue being self-funded.
“There’s lots of uncertainty in the financial markets right now and, while we do know that the industry is cyclical, nobody knows when the market sentiment will change.”
According to a blog post published this week, Indian cryptocurrency exchange CoinDCX has banned crypto deposits and withdrawals for a number of users due to compliance, risk, and monitoring needs.
CoinDCX has been bolstering its compliance and risk structure in response to stricter criteria for offering seamless rupee deposits and withdrawals.
“This was done in a series of steps, including improving KYC coverage, enhancing the risk framework for crypto deposit & withdrawal, and integrating with compliance and monitoring tools like Coinfirm, Solidus Labs, Signzy, Digilocker, etc., over the last six months. Over the past month, we have been gradually restricting crypto deposits & withdrawals for multiple users,” it added.
Every user must complete their KYC on CoinDCX’s platform, according to the company’s explanation. Cryptocurrency withdrawals & deposits are still by default disabled for everyone. To enable crypto deposits and withdrawals, one must adhere to an enhanced due diligence procedure. The same policy will be made public in the upcoming 14 days.
The worldwide crypto market slump has left the Indian web3 industry on edge, and businesses are becoming cautious when it comes to hiring. While local cryptocurrency exchanges insist they won’t be laying off employees, unlike US-based cryptocurrency exchange Coinbase, at least four top executives indicated the sector is reevaluating its employment plans for the year.
Executives claim that cryptocurrency companies keep a sizable portion of their treasury in cryptocurrencies, which have lost value as a result of the market slump. Additionally, businesses that rely on venture capital will need to think about their runways during the downturn.
(With agency inputs)