United Kingdom’s oldest crypto exchange Coinfloor is set to lay off half of its workforce, which means the crypto industry is indeed experiencing a decline.
The crypto exchange has approximately 40 employees. According to an October 8 report by the Financial News, two unnamed sources with insider knowledge about the matter has stated that more than half of the staff will be given their walking papers.
Obi Nwosu, the CEO of Coinfloor, confirms the dismissal but refuses to divulge the exact number of employees to be laid off. Nwosu tells the Financial News that the staff reductions are normal practice to a changing market atmosphere.
2018 has seen a steep decline in the cryptocurrency market, with many coins including Bitcoin losing more than half of its value.
Coinfloor is not the only crypto company to bear the brunt of the crypto price slump. As a “cost-saving measure,” Kraken CEO Jesse Powell has stated in September that the San Francisco-based crypto exchange company will be laying off 10 percent of its client services staff. However, the CEO denies reports that the number of employees to be dismissed will be more than what he has declared.
In spite of the market decline, many exchanges are still trying to present a positive impression. Binance CEO Changpeng Zhao touts that the crypto exchange is expected to generate a revenue of $500 million to $1 billion in 2018. Still, in the absence of the Binance’s financial report, it will be difficult to confirm the statement.
Coinfloor, which was established in 2013, is one of the oldest crypto exchanges in the industry. Early in its campaign, the company has boasted that it adheres to a stringent know-your-customer (KYC) and anti-money laundering (AML) processes to ensure the veracity of its users and traders.
Based on the company website, among the crypto exchange’s supporters include Taavet Hinrikus, the founder of TransferWise; venture capital firm Passion Capital; and former Goldman Sachs and Credit Suisse managing director Adam Knight.