Crypto Custody Provider Qredo Faces Financial Challenges
Crypto custody infrastructure provider Qredo is currently facing financial difficulties, according to sources familiar with the matter. The company, which raised $80 million in funding last year, has around six months of runway left and has recently cut 50% of its staff. This comes after Qredo had already let go of approximately 50 people in September. The current headcount at the firm is now about 50, down from over 200 earlier this year.
In order to stay afloat, Qredo is actively seeking fresh funding and exploring strategic mergers and acquisitions. One of its investors, Dan Tapiero’s 10T Holdings, is reportedly assisting in these efforts. However, the company’s business has declined, with transactional activity falling throughout this year alongside the overall market activity.
Qredo’s Valuation and Business Focus
Last year, Qredo was valued at $460 million when it raised $80 million in Series A funding. At that time, the company planned to use the funds for growth through acquisitions, product development, and geographic expansion. However, it remains unclear how the capital was utilized.
Qredo’s core offerings include its Layer 2 protocol called the Qredo Network and a custody technique called distributed multi-party computation (dMPC). The company aims to eliminate third-party custodians by recording all funds and transactions on-chain on the Qredo Network using its unique dMPC technology.
The Decline of QRDO Token
The QRDO token has experienced a significant drop in value, falling nearly 100% from its peak price of $9.81 in November 2021 to current levels of around $0.03915180. This decline has resulted in a fully diluted valuation of the token at approximately $64 million.
Industry-Wide Job Cuts
Qredo’s layoffs are part of a larger trend within the crypto industry, with more companies cutting jobs. Ledger, Chainalysis, and Chia Network are among the recent firms that have reduced their workforce.
Hot Take: Qredo Struggles to Survive in a Challenging Market
Qredo, a crypto custody infrastructure provider, is facing financial challenges as its business declines. The company has cut 50% of its staff and is actively seeking funding and exploring strategic options to stay afloat. However, the decline in transactional activity in the crypto market has affected Qredo’s performance. With its valuation dropping and job cuts continuing, Qredo’s future remains uncertain. This situation highlights the challenges faced by companies in the crypto industry during periods of market volatility. It serves as a reminder that even well-funded firms can struggle to adapt and survive in this rapidly changing landscape.
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