Crypto.com has announced a 20% downsizing, citing worsening macroeconomic conditions and the collapse of rival exchange FTX.
“While we continue to perform well, we’ve grown to over 70 million users worldwide and have a strong balance sheet, but we’ve had to deal with ongoing economic challenges and unforeseen industry events.” – written by Crypto.com co-founder and CEO Kris Marszalek said in a blog post on Friday.
The blog post added that the company’s recent positive trajectory “changed quickly“, when negative macroeconomic developments upset the operation of the sector.
Another layoff at Crypto.com comes after the company already conducted a wave of layoffs last July. However, to deal with the difficulties caused by the collapse of FTX, that wave of downsizing proved insufficient to weather the storm.
“The measures implemented last July positioned us well to weather the macroeconomic downturn, but they did not take into account the recent collapse of FTX, which significantly damaged confidence in the industry.” wrote Marszalek.
Marszalek further said that all affected employees have been notified. He also made it clear that the layoffs “they are not related to performance in any way“, but the reason is simply cost reduction.
Finally, the CEO of Crypto.com said:
“I am confident that we will be able to build and lead the market, and I am grateful that we can work together on the road ahead.”
The audit shows sufficient coverage
Like many other crypto companies, Crypto.com had a difficult year in 2022 as the collapse of many of its competitors caused serious fear in the sector.
Last December, the company published the Proof of Reserves document from the Mazars auditing firm, proving that its clients’ assets are fully covered one-to-one. I’ll marshal the audit then”called it an important step for the entire industry to increase transparency and begin to restore trust”.
“Crypto.com is fully committed to providing customers worldwide with a safe, secure and regulated platform to manage digital currencies.” – he added in a commentary published on the company’s website.
A CRO token ralizik
Traders in the crypto market apparently welcomed the news of Crypto.com downsizing. Crypto.com’s own Cronos (CRO) token has seen a strong 5.3% rise in the past 24 hours and is currently trading at $0.07.
Still, there’s no doubt that the token has had a rough year, losing more than 85% of its value in the past year.