Crypto.com has announced that it will cut 20% of its staff, citing macroeconomic headwinds and the collapse of a rival exchange. ftx as its reasons.
“While we continue to perform well, grow to over 70 million users worldwide and maintain a strong balance sheet, we have had to navigate ongoing economic headwinds and unexpected industry events,” Crypto.com Chris Marszalek, co-founder and CEO, wrote a blog Post on Friday.
The blog post said the company was on a positive trajectory as the recent confluence of negative macroeconomic developments “turned sharply”.
The latest cut for Crypto.com comes after the company announced the first round of cuts in July last year. With the collapse of FTX, however, that round turned out not to be enough to weather the storm.
“The cut we made last July took a toll on the macroeconomic downturn, but it did not account for the recent collapse of FTX, which significantly damaged confidence in the industry,” Marszalek wrote.
Marszalek further added that all affected personnel have already been notified. He also clarified that the cuts are “not performance related in any way,” but purely related to the need to cut costs.
In conclusion, the CEO of Crypto.com said:
“I am confident in our ability to create and lead the market, and I look forward to working with all of you on the journey ahead.”
Audit shows full reserves
Like many other crypto-native companies, Crypto.com has had a rough year in 2022, as the collapse of many of its competitors sparked fear in the market.
In December last year the company released its Proof of Reserve data From auditing firm Mazars Group, proving that its clients’ assets are fully backed one-to-one. At the time, Marszalek called the move “an important step for the entire industry to increase transparency and begin the process of restoring trust.”
“Crypto.com is fully committed to providing customers around the world with a safe, secure and compliant means of engaging with digital currencies,” he said in a comment published on the company’s website.
CRO Token Rallies
In the market, traders appeared to welcome the news of Crypto.com’s downsizing, sending their Chronos price (CRO) has gained a strong 5.3% in the past 24 hours at the time of writing.
Nevertheless, there is no doubt that the coin has had a tough year in the market, down more than 85% over the past year from its current price of $0.07.
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