Sources at NYDIG say the firm, which aimed to introduce BTC to the banking system, burned through the $1b it raised amid leadership shuffles at the top.
The exchange’s strategy of splashing on ads and partnerships backfired as the bear market set in, and it has scaled them down and laid off over 2,000 employees.
2TM blames the dire global financial conditions and the lack of proper digital asset regulations for its underwhelming performance this year, which led the firm to give up some of its workers again.
The company cites the persisting price slump in the digital asset market with Rain's co-founder and CEO, noting that the volatility in the industry has resulted in "unfortunate changes."
CEO Vlad Tenev took the blame for the layoffs, saying the company projected the high interest in its platform during the pandemic, and meme stock craze would last.
The cuts will reduce overheads by up to 60%, CoinFLEX says, further hinting at acquisition possibility even as its $84 million dispute with Roger Ver continues.
A source with insider knowledge told TechCrunch that the exchange plans to cut down from 950 employees to 800 in a move aimed at “extreme cost-cutting.”
Devin Finzer attributed the decision to the "crypto winter and broad macroeconomic instability," stating that they need to prepare the NFT company "for the possibility of a prolonged downturn."
The company cites the current market conditions as one of the reasons for the move; the layoffs will affect around 100 employees, with 55 of them from eToro operations in Israel.
Just weeks after its CEO and CFO resigned, Compass Mining has announced layoffs and salary cuts, claiming it grew too fast as the bear market claims more victims.
OSL spokesperson also noted that the exchange had adjusted its business model to focus more on software-as-a-service, as well as professionals and institutional services.