CryptoCom Hit Hard: Laid Off More Employees Than Previously Suggested
- In July, the CEO of CryptoCom, Kris Marszalek, revealed that the exchange will cut off its employee count by 5% or 250 employees.
- However, reports reveal that the exchange actually released 2,000-3,000 employees as it was adversely affected by lower trading volumes and a huge decline in prices of cryptocurrencies.
- The firm also went back on its deal with Los Angeles-based soccer team Angel F.C. and UEFA Champion League as well.
One of the biggest crypto exchanges, CryptoCom, that has seen a marvelous run in 2021’s bull market and went on to expand its services across several countries, might be in more trouble than previously expected as the firm has laid off more employees than it was previously suggested. According to a report from Ad Age, the prominent exchange has laid off a huge number of workers due to financial issues.
Interestingly, as per the report, the firm has officially cut down its employee count by around 2,000 to 3,000 employees which suggests that the expansion of the firm last year in the bull market might have been quite rapid and now, the crypto exchange is having second thoughs. There has been a sharp decline in crypto investments and low trading volumes since the outbreak of the conflict between Russia and Ukraine. Many other factors such as the collapse of crypto hedge fund 3AC, the Terra ecosystem, and Celsius Network have all contributed to the decline in the trading volumes on various crypto exchanges, one of them being CryptoCom.
The report, which cited multiple sources with the knowledge of the matter, confirmed that CryptoCom has backed off from a number of deals due to lack of funds which primarily rose from aggressive marketing tactics and expansion.
Interestingly, the CEO of the exchange Kris Marszalek confirmed that it would be laying off around 5% of its employees in June which amounted to 250 employees. However, this seems to be a fake number as people close to the matter confirm that the numbers are actually higher.
One of the spokesperson was quoted saying that “Crypto.com underwent a restructuring process that concluded in July to strengthen our position amidst the backdrop of a bear market climate … As part of that restructuring, we made the difficult decision to conduct targeted job reductions, 60% of those roles came from non-corporate, back office and support services tied to trade volumes.”
CryptoCom has also went back on a number of deals that it had recently made with several firms. Last month, it was confirmed that the crypto exchange will not be going ahead with its $495 million UEFA Champion League sponsorship deal and also, it retracted its sponsorship with Los Angeles-based soccer team Angel F.C., confirmed the report. The firm also canceled its deal with esports league of streaming service Twitch.
Interestingly, the exchange has also been expanding its services after applying for regulatory clearance to operate in France, Greece, UK, Dubai, Italy, and other countries. The Singapore-based crypto exchange platform was green lit to operate in France by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF), as previously reported by Bitnation.
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.
