London-based digital asset exchange platform BlockEx has recently instituted a mass “staff reduction” in an effort to cut operational cost amid the industry-wide collapse across the crypto markets in the last year.
As Bitcoin skyrocketed to an all-time-high in 2017 reaching nearly $20,000, BlockEx, which was initially marketed as a platform for issuing digital assets, launched its token sale and subsequently expanded to facilitate crypto trading. Throughout the succeeding months, the platform has successfully raised over $24 million from its DAXY token presale.
Fast forward to 2019 and the company is now downsizing its workforce, as crypto startups continue to fall on bad times catalyzed by the crypto markets’ abysmal plunge, with some digital assets losing over 90% of its total market cap.
As BlockEx chief executive Adam Leonard was quoted as explaining, the company’s move was initiated in an effort to extend BlockEx’s financial runway, as a number of the firm’s crypto ventures have consequently waned in the last year. However, despite the reduction in force, Leonard remains optimistic, hinting at several less dismal announcements in the coming weeks.
BlockEx is not the only crypto startup that has recently made the tough call of laying off large swathes of its workforce in an effort to survive the prevailing crypto bear markets.
Last week, Blockfolio, the company that previously launched a mobile app for cryptocurrency portfolio tracking and management, has also announced that it too had undergone restructuring, as the company lays off five employees, reducing its workforce from 41 to only 37. As Blockfolio chief executive Edward Moncada recently confirmed, the company has temporarily put its affiliate venture Datablock on the backburner, prompting the company to downsize.
Prior to Blockfolio’s announcement, ShapeShift.io CEO Erik Voorhees has also published a blog post disclosing that the crypto startup had inadvertently reduced its workforce, terminating over 37 of its staff, roughly a third of its entire team.
Major crypto mining firm Bitmain is also purportedly shutting down operations, prompting the crypto mining giant to lay off over 1,350 employees in the process. On top of terminating over half of its workforce, the co-founders of the Beijing-based conglomerate is also reportedly stepping down from their post.
As Chinese crypto insider and Primitive Capital pro-Bitcoin partner Dovey Wan predicted last December, the crypto industry could potentially face even further mass staff reduction in the coming months. As Wan noted in a previous Twitter post, once the “employment and human resources cycle kicks in,” more startups will most likely be terminating under-performing staffs.
As the number of crypto firms downsizing in recent months continues to rise, BlockEx isn’t likely to be the last firm to be mired in such an imbroglio.