The Layoffs Continue: French Crypto Firm Coinhouse Cuts Workforce by 15%
French crypto firm Coinhouse has announced that it is cutting 15% of its workforce, according to a spokesperson. Reports indicate that the company has laid off 10 employees, reducing its total headcount from 70 to 60. Coinhouse, based in Paris, is a crypto broker that allows investors to buy and sell various cryptocurrencies. It obtained registration as a digital asset service provider from the French Financial Markets Authority in 2020 and holds a license from the Luxembourg financial regulator. The company cited reduced enthusiasm for Web3 and a fragile global economic environment as reasons for the cuts.
Coinhouse CEO Nicolas Louvet stated that the company is committed to supporting the employees who will be leaving and emphasized that the firm is transitioning to helping other companies shape their Web3 strategies. Despite the layoffs, Coinhouse plans to expand its services, including the launch of a Euro Account.
Crypto Industry and the Bear Market
These recent layoffs in the crypto industry follow Ledger’s announcement of a 12% reduction in its workforce two weeks ago. Additionally, NFT creator Yuga Labs confirmed layoffs at the beginning of October. The bear market has taken its toll on cryptocurrencies, with Bitcoin down 60% from its all-time high and Ethereum down 67%. The challenging market conditions have led to companies restructuring and making cuts to adapt to the current environment.
Hot Take: The Impact of Market Conditions on Crypto Companies
The ongoing bear market has resulted in significant challenges for crypto companies worldwide. As enthusiasm for Web3 wanes and global economic uncertainties persist, firms like Coinhouse are forced to make difficult decisions, including reducing their workforce. The need for adaptation and strategic transformation becomes crucial in these times. While layoffs may be necessary to ensure sustainability, it is essential for companies to support their employees during transitions. As the market evolves, crypto firms will continue to navigate these turbulent times and explore new opportunities for growth and innovation.
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