ShapeShift Lays Off 37 in Latest Round of Crypto Industry Cutbacks
Crypto exchange ShapeShift has announced a round of layoffs, citing a range of difficulties such as a challenging market climate. In a blog article printed Tuesday, CEO Erik Voorhees wrote that the startup had laid off 37 employees, or even a third of its employees. He explained the process as”a profound and debilitating decrease, reflected across several crypto businesses in this newest bear market cycle”
Since Voorhees mentioned, ShapeShift is not the sole crypto startup to maneuver to cut back its workforce in recent weeks. As BMI previously mentioned, ethereum production studio ConsenSys declared a 13 percent staff cut early December. More lately, chat startup Position and bitcoin mining giant Bitmain verified they were cutting staffers.
In among the very transparent testimonies of its type thus far, Voorhees detailed several problems which worked against Shapeshift heading to this choice. Apart from the mounting legal issues which have shrunk the whole sector, Voorhees contended the firm grew too quickly and distribute its attempts into a lot of product areas (for instance, CoinCap, it is CoinMarketCap competition, also KeepKey, an acquisition).
Furthermore, the organization’s decision to start performing know-your-customer checks on clients caused a sizable reduction in customers and users. Last, transactions, generally speaking, dropped across the board, causing a general fall in earnings, Voorhees wrote.
Although Voorhees said the company had hedged for these dangers, it was not sufficient to enable the company to stay in its current staffing level.
“2018 marked a demanding year. While this brand new one begins upon a few painful reorganization, we are encouraged and optimistic for 2019,” he wrote.