Employee Discharge By Crypto Exchange-Business in the crypto space is in the going down phase. Hence, the UK’s first crypto exchange: Coinfloor, to layoff half of its employees. The company, which is the oldest exchange in London, currently has approximately 40 employees. In a business decision, the company decided that close to half of its employees will be discharged from their position. This news was released on 8th October 2018.
Obi Nwosu, CEO of Coinfloor, hasn’t given an exact number of layoffs but confirmed they are inevitable. He stated that these are necessary and normal responses to the changing market condition.
From the beginning of this year, Bitcoin has lost nearly half of its value. Furthermore, The crypto market is taking a downturn and a lot of change is expected in the industry. Crypto-business is being impacted by the rigorous regulation processes being conducted across the globe. China has increased its actions against crypto companies and the US is tightening its regulations on crypto exchanges, unregistered securities dealers and questionable initial coin offerings (ICOs).
It’s not solely Coinfloor, many crypto business firms have been detrimentally affected by the changing market conditions. The CEO of San Francisco based exchange Kraken, Jesse Powell stated that his company is also preparing for “cost-cutting measures” by decreasing its client service team by 10%. Kraken is the 23rd largest exchange by the trading volume.
Even in these changing market conditions, some companies are seeing considerable profit margins. The CEO of Binance boasted that it is expecting a net profit of $500 million to $100 billion in 2018! Optimistic indeed!! We’ll see the actuality of the number once the company’s financials are released.
Employee Discharge By Crypto Exchange-To date there are 219 crypto exchanges which emerged as a consequence of the great profit margins in the exchange business; however, present market conditions are making it essential for every exchange to deploy “cost-cutting measures” if they wish to survive in the business.
Coinfloor was founded in 2013 as the very first exchange company in the market. It introduced Know-Your-Customer(KYC) and Anti-Money-Laundering protocols to increase the integrity of users and traders alike. As the changing market conditions are calling for employee layoffs in the oldest exchange firm, should we be expecting further layoffs within big crypto exchange business firms?