UK-based cryptoasset company Blockchain.com has said it is cutting 25% of its staff due to market difficulties.
Around 150 staff are expected to be laid off at the company as the firm struggles to cope with the ongoing slowdown in the cryptocurrency industry and the wider economic downturn which has seen many tech startups make layoffs and giants technology to freeze employment.
Blockchain.com has also said it is scaling back its international ambitions by closing its Argentina office and ending some planned national market expansions.
The majority of the jobs that will be lost will be those located in the Argentina office. However, job losses will also affect UK and US staff at the company.
Founded in York in 2011, Blockchain.com became one of the largest cryptocurrency firms in the world in 2021 when it first surpassed a $1bn valuation. As of March 2022, the company is valued at around $14bn.
However, in recent months, the crypto businesses have been imploding with collapses causing ripple effects throughout the industry.
Blockchain.com lent $270m worth of crypto assets to Three Arrows Capital before it was shut down. The company is not expected to see a return on the loan.
The fall in the value of the Terra ‘stablecoin’ was an early example of the crypto market crash, which sent a domino effect across the industry.
The largest cryptocurrency, Bitcoin, is able to hold a fairly steady value after a mild recovery. However, Elon Musk’s Tesla recently announced that he has sold most of his Bitcoin holdings, in a sign that institutional investors who were once bullish on the digital asset are looking for damage limitation.
Despite obvious industry problems, UK minister and former health secretary Matt Hancock continues to encourage investment and growth in crypto-assets, which he described in a recent statement. interview with RATN.
Blockchain.com was previously expected one on the US stock market for an upcoming IPO after its last round of funding.
Blockchain.com cuts 25% of jobs as crypto woes continue
Source link Blockchain.com cuts 25% of jobs as crypto woes continue