Australian Banxa crypto firm is the latest to cut down 30% of its workforce due to heavy crypto winter market conditions as we can see more today in our latest cryptocurrency news today.
The Banxa crypto firm is a crypto payments operator which announced it will lay off 30% of its staff in order to reduce operating costs amid the bear market. Holger Arians the CEO of the company wrote in a letter to the employees:
“Banxa must take decisive actions to reduce costs now, or else our company won’t be able to succeed over the long run.”
The Australian company is an on-off ramp solution and facilitates conversions between digital assets and fiat currencies. The CEO Added:
“Like many others in our industry [we] are anticipating another crypto winter, with trading volumes declining significantly. We saw Banxa’s market capitalization nearly halve in a matter of days, and the forecast is that these conditions will most likely continue for another 12 months.”
Banxa’s European Managing Director Jan Lorenc is set to leave the company whcih indicates the diminishing interest in the EU market. According to the data from LinkedIn, Banxa has employees in multiple countries such as the Netherlands, Australia, Lithuania, Philippines, the UK and US, and Canada. Banxa will also drop its staff from 230 employees to 160. Other major crypto platforms like Crypto.co, Gemini,m BlockFi, Robinhood, and Coinbase also reduced the number of employees to weather the upcomign crypto winter. Most crypto platforms make revenue from trading fees associated with their trading volume and due to the reduced trading volumes, the revenues dried up.
The past 24 hours of trading volume on exchanges was $50 billion a day ago or down 60% from its peak of $124.5 billion that was recorded on November 11, 2021. the CEO of Coinbase Brian Armstrong wrote:
“Our team has grown very quickly (>4x in the past 18 months) and our employee costs are too high to effectively manage this uncertain market.”
Bitcoin is trading near $21,400 down by 68% from its ATH back in November 2021. The total market cap of all cryptocurrneices slipped below $1 trillion.
As recently reported, Crypto.com makes cuts in its workforce and will lay off 260 people as the market continues to head into a downturn as CEO Kris Marszalek said. He described the layoffs as difficult and necessary beucase they need to ensure sustainable growth for the long term. The CEO referenced the current market downturn and alluded to the 2018 bear market with the company’s focus on the building during the 2018 crypto winter.
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