The acclaimed Indian crypto exchange CoinSwitch, backed by the prominent financial powerhouse Andreessen Horowitz (a16z), recently reduced its workforce by 44, which makes up 7% of its employees.
CoinDCX and CoinSwitch Face Challenges
Interestingly, CoinDCX, another eminent local digital currency firm, echoed this move by letting go of 12% of its team.
BQ Prime highlights the reason behind CoinSwitch’s cutbacks as being tied to a decline in customer activity. Offering clarity on the situation, a representative from the platform revealed:
“We consistently review our operations to remain ahead, emphasizing innovation and premium service. Consequently, we’ve recalibrated our support team to reflect the current frequency of client inquiries.”
Insiders have pointed out a stark contrast between the 2021 bull market’s attraction for clients and the current diminished interest owing to the ongoing crypto winter, necessitating such workforce reductions.
CoinSwitch’s Commitment to its Team
Despite these layoffs, CoinSwitch remains optimistic. They pledge to observe the crypto market‘s pulse keenly and are open to rehiring the affected employees should there be an uptick in trading volumes.
Last summer, CoinSwitch found itself amidst controversy when Indian authorities searched its offices and directors’ homes in a sweeping money-laundering probe. However, CEO Ashish Singhal swiftly addressed the allegations, clarifying:
“Our dialogue with the Enforcement Directorate – Bengaluru is strictly about our crypto operations. We’re in full cooperation. Contrary to some reports, it wasn’t a money laundering inquiry under PMLA.”
A Widespread Industry Trend
CoinSwitch is not an isolated case. The crypto bear market has compelled several leading exchanges, including Coinbase, Crypto.com, Gemini, Huobi, Bybit, BitMEX, and KuCoin, to reevaluate their staffing.
The crypto landscape is dynamic and ever-evolving. Organizations like CoinSwitch, backed by major financial entities, are making strategic decisions to navigate the current bearish trend. As the industry adapts to these market shifts, only time will tell what the future holds for these crypto giants.
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