Posted on 01/16/2023 7:32:28 AM PST by fluorescence
Crypto.com announced Friday that it’s laying off 20% of its workforce. CEO Kris Marszalek said in a blog post that the crypto exchange grew “ambitiously” but was unable to weather the collapse of Sam Bankman-Fried’s crypto empire FTX without the further cuts.
“All impacted personnel have already been notified,” Marszalek said in a post.
The company has 2,450 employees, according to PitchBook data, suggesting around 490 employees were laid off. A Crypto.com representative was not immediately available to comment.
Crypto exchanges and lenders have been forced to aggressively pare back head count, a move accelerated by the FTX collapse and the wave of crises that have followed.
Marszalek said the reduction was part of Crypto.com’s continued focus on “prudent financial management.”
Like FTX, Crypto.com entered into high-profile promotion deals and sponsorships, signing an eye-popping naming deal for the former Staples Center in 2021 that’s valued at $700 million over 20 years. The arena is home to the NBA’s Los Angeles Lakers.
“We have a significant year ahead of us as we continue to help restore trust in our industry,” Marszalek wrote. Marszalek founded Singapore-based Crypto.com in 2016, overseeing a company that reportedly reached at least $1.2 billion in revenue by 2021.
Crypto.com had a bruising 2022. High-profile gaffes included multiple mistaken transfers, one of which accidentally transferred over $400 million worth of assets to another exchange. The company also laid off some employees in 2022.
In December, CNBC reported on some of Marszalek’s business successes and failures. At the time, Marszalek dismissed concerns about Crypto.com’s stability.
“Startups are hard ... but there is no better way to live,” he wrote.
Best economy ever.
I just hate when I do that.
This reminds me, have the feds hustled SBF out the back door yet?
Price is down due to speculation being down, this whole episode scared off these get rich quick schemers.
But what everyone is missing is transactional volume keeps climbing, meaning more and more are using them. This is very big in the third world.
I buy this stuff and always have for the purpose of propagating an alternative to woke banks and enable trade with people who do not have access to banks. I assume it is a loss.
Most of the alt-coins I avoid, I keep with the core...btc, lite as these usually are the backstop for interchange for what ever coin they are using.
Might be wrong, might be right, might be wrong today, but right tomorrow, but that’s what I am doing. Just a little disposable deposit into a market liquidity fund.
To be expected in any new industry that is in a bubble economy.
Dot com bubble was the same.
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