Crypto Firm Coinhouse Announces Layoffs Amidst Challenging Crypto Market
The crypto industry continues to face challenges as the bear market persists, with companies making difficult decisions to navigate the volatile market conditions. The latest firm to announce layoffs is French crypto broker Coinhouse, which confirmed a 15% reduction in its workforce on Friday.
According to reports from local outlet BFM, Coinhouse has let go of ten individuals, reducing its total headcount from 70 to 60. This downsizing comes after the company had seen significant growth, expanding its workforce to 100 employees just a year ago. Coinhouse is known for its role as a crypto broker based in Paris, allowing investors to buy and sell up to 40 different cryptocurrencies.
Established in 2015, Coinhouse became one of the first entities to secure registration as a digital asset service provider (PSAN) from the French Financial Markets Authority (AMF) in 2020. The company also obtained a license from the Luxembourg financial regulator, enabling it to conduct business in the Luxembourg market.
Coinhouse attributed the layoffs to multiple factors, including the reduced enthusiasm for Web3 and the challenging global economic environment, which have constrained the development of the crypto market and its participants. The company expressed its commitment to supporting the employees affected by the layoffs, ensuring they receive necessary assistance during this transition.
However, Coinhouse also emphasized its shift towards helping other companies and institutions shape their Web3 strategies. Despite the layoffs, the company plans to expand its services, including the launch of a Euro Account in the near future.
Coinhouse’s layoffs follow closely on the heels of another major French player in the crypto industry, Ledger, which announced a 12% reduction in its workforce just two weeks prior. Additionally, NFT powerhouse Bored Ape Yacht Club creator Yuga Labs also confirmed layoffs at the beginning of October.
The crypto industry’s challenges are further highlighted by the significant market decline. Bitcoin, the largest cryptocurrency, is currently down 60% from its all-time high of approximately $69,000 in November 2021. Similarly, Ethereum, the second-largest cryptocurrency, has experienced a 67% decline from its high of $4,878 during the same period.
As the crypto industry continues to navigate the bear market, companies are facing the need to adapt and streamline their operations. Layoffs are an unfortunate consequence of the market conditions and are likely to persist until the industry stabilizes and rebounds. However, the companies that can weather the storm and adapt to the changing landscape may emerge stronger and better prepared to thrive in the future.