Nomuraโs Profitability Delayed by Cryptocurrency Turmoil
You might be interested to know that Nomura, a prominent financial company, is facing challenges in turning profitable due to the ongoing turmoil in the cryptocurrency industry. Previously, Laser Digital, a subsidiary of Nomura, had projected to accomplish profits by 2024. Nonetheless, in a recent interview with Bloomberg, CEO Jez Mohideen revealed that the companyโs profitability journey is being hindered by the impact of the cryptocurrency marketโs volatility and changing regulatory requirements.
โOur profitability journey may take a bit longer than we forecast lastย year. Volumes have come down, activity has shrunk, regulatorsโ needs are changing โ all these are leading to some delays in our overall journey including profitability.โ
Mohideen had previously expressed optimism about Laser Digitalโs profit prospects, stating that the demand for safer alternatives in the cryptocurrency sector would drive growth. Nonetheless, the collapse in the market, resulting in a $2 trillion loss in cryptocurrency market value, influenced the entire sector, including Laser Digital. Regardlessย of these challenges, Mohideen remains confident in futureย ofย the the cryptocurrency industry, especially with the entry of more institutions and institutional projects.
Laser Digitalโs Expansion Plans and Hiring Strategy
To strengthen their position in the market and support their worldwide trading business, Laser Digital is establishing an office in Tokyo. The company intendsย to hire 4 to 6 individuals for this office. Inย addition, Laser Digital has already hired 70 staff members and intendsย to add up to 20 more over time. According to Mohideen, theย present market conditions provide opportunities to acquire assets and hire talented individuals at lower valuations.
Hot Take: Challenges and Optimism in the Cryptocurrency Industry
The cryptocurrency industry continuesย to face challenges and uncertainties, as demonstrated by Nomuraโs struggle to accomplish profitability. The marketโs volatility, changing regulatory landscape, and the aftermath of the FTX exchange failure have had wholeย lotย of impacts. Nonetheless, the entry of more institutions and the participation of financial giants like BlackRock indicate a promising future. Althoughย while it may take longer than anticipated, the industryโs probable for growth and innovation remains strong.
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