Binance Completes Tokocrypto Acquisition, 58% Workforce Fired
- Binance has officially announced the acquisition of leading crypto exchange, Tokocrypto, which is based in Indonesia.
- The exchange aims to expand services in the Indonesian market with the acquisition.
- Around 58% of the employees of Tokocrypto have been fired due to market conditions.
- Binance’s Portfolio Company CEO Yudhono Rawis will serve as interim CEO for Tokocrypto.
- Tokocrypto’s co-founder and CEO, Pang Xue Kai, will soon resign from his position.
The crypto winter has not disrupted the goals of continuous dominance of the world’s biggest crypto exchange, Binance, which is under the leadership of Changpeng “CZ” Zhao. The leading crypto firm has officially announced the acquisition of Indonesia-based crypto exchange Tokocrypto, confirming the rumors circulating on December 6 regarding the same.
As per the press release shared with CoinDesk Indonesia, Tokocrypto’s co-founder and Chief Executive Officer, Pang Xue Kai, will soon resign from his position at the company. During the acquisition process, Binance’s portfolio company CEO, Yudhono Rawis, will serve as interim CEO for Tokocrypto.
However, the announcement clarifies that Kai will still be a member of the Board of Commissioners for Tokocrypto and continue to offer leadership support in his new role. Kai claims that this decision was made after considerable thought, relying on Binance’s ability to provide a physical trading platform for crypto assets.
“Tokocrypto came from our idea more than four years ago and I am very proud to see every growth, achievement, and contribution that the company has made to advance Indonesia’s digital economy. This decision was made after careful consideration and we decided that the best step for Tokocrypto going forward is to leverage Binance’s ability to build a further crypto asset physical trading platform,” he stated.
It is important to note that Indonesia’s leading exchange has laid off 58% of its employees due to unstable crypto market conditions following the acquisition of Binance. According to Tokocrypto’s LinkedIn page, it currently has around 290 employees. In September, the company let go of 45 employees. This confirms that the crypto winter has left many crypto employees without jobs. As earlier reported by Bitnation, crypto trading firm Amber Group laid off 10% of its employees.
Interestingly, Binance has always supported the idea behind Tokocrypto, as it has previously invested in the Indonesian exchange since 2020. Given that Tokocrypto holds a crypto license in Indonesia, Binance expects to grow its clientele there as a result of the acquisition deal. The exchange has also debuted the “Binance Pay” option for all the people in the US, which will enable them to money using their smartphones.
Binance, which sees the crypto winter as an excellent opportunity for expansion, has struck similar deals before. It bought Japan’s Sakura Exchange Bitcoin (SEBC) last month to re-enter the nation. Moreover, the world’s largest exchange also purchased a significant share in Malaysia’s MX Global, a licensed platform for trading digital assets.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
