Nomura’s Profitability Delayed by Crypto 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 crypto industry. Previously, Laser Digital, a subsidiary of Nomura, had projected to achieve profits by 2024. However, in a recent interview with Bloomberg, CEO Jez Mohideen revealed that the company’s profitability journey is being hindered by the impact of the crypto market’s volatility and changing regulatory requirements.
“Our profitability journey may take a bit longer than we forecast a year ago. Volumes have come down, activity has shrunk, regulators’ needs are changing – all these are leading to some delays in our overall journey including profitability.”
Mohideen had previously expressed optimism about Laser Digital’s profit prospects, stating that the demand for safer alternatives in the crypto sector would drive growth. However, the crash in the market, resulting in a $2 trillion loss in crypto market value, affected the entire sector, including Laser Digital. Despite these challenges, Mohideen remains confident in the future of the crypto industry, especially with the entry of more institutions and institutional projects.
Laser Digital’s Expansion Plans and Hiring Strategy
To strengthen their position in the market and support their global trading business, Laser Digital is establishing an office in Tokyo. The company aims to hire 4 to 6 individuals for this office. Additionally, Laser Digital has already hired 70 staff members and plans to add up to 20 more over time. According to Mohideen, the current market conditions provide opportunities to acquire assets and hire talented individuals at lower valuations.
Hot Take: Challenges and Optimism in the Crypto Industry
The crypto industry continues to face challenges and uncertainties, as demonstrated by Nomura’s struggle to achieve profitability. The market’s volatility, changing regulatory landscape, and the aftermath of the FTX exchange failure have had significant impacts. However, the entry of more institutions and the participation of financial giants like BlackRock indicate a promising future. While it may take longer than anticipated, the industry’s potential for growth and innovation remains strong.
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