U.K-Based Crypto Exchange Coinfloor Reportedly Laying Off 40 Staff

According to inside sources, U.K.-based crypto exchange Coinfloor plans to reduce the number of employees in a restructuring effort resulting from changes witnessed in the digital currency market.

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According to inside sources, U.K.-based crypto exchange Coinfloor plans to reduce the number of employees in a restructuring effort resulting from changes witnessed in the digital currency market.

Coinfloor troubles leave industry worried

Coinfloor is one of the oldest cryptocurrency exchanges in the world, and the move to lay off some of its workers is causing ripples in the industry already.

The Financial News has reported that the impending layoffs would see most of the company’s forty plus employees lose their jobs.

The exchange service’s chief executive Obi Nwosu appeared to confirm the truth in the reports, although he did not state precisely how many of their employees would be affected.

In his brief comment on the matter, Nwosu explained that the firm’s trading volume was seeing significant changes that necessitate changes. He added that:

“Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructuring, we are making some staff changes and redundancies.”

Crypto market has a difficult road forward

The crypto market has faced a rough time since the turn of the year, with most cryptocurrencies losing up to 80 percent of their value since January. Massive price declines have affected crypto exchange businesses, most of which have suffered from low trading volumes.

The Coinfloor platform could have seen a considerable drop in the trading volumes, both from the general decline and from a plethora of competitors who have set up business in Coinfloor’s backyard.

All signs point to Coinfloor exploring restructuring as a strategy to stay ahead of rivals that have identified the U.K. as a lucrative market, with several top crypto exchanges and trading platforms having either already expanded or are seeking to expand into the United Kingdom.

Already, leading U.S exchange Coinbase has its operations and products in the region, boosting its expansion efforts by offering more fiat-crypto trading pairs using the Pound Sterling.

In July, another popular exchange in the U.S., Bittrex, agreed to a partnership with invest.com, a U.K.-based FinTech to launch a new digital currency trading platform to serve a growing European market.

In early September, Singapore-based KuCoin finalized a $3 million partnership with Bitcoin Australia, with the latter stating that it viewed the U.K as its next primary target for expansion.

Other top exchanges have also identified the fast-expanding U.K market as a potential destination, drawing the likes of Winklevoss-owned Gemini, Canada-based Coinsquare and Bithumb.

Job cuts may be necessary for future growth

Given the current market situation and the expected consolidations in the industry, it wouldn’t be surprising to see more job layoffs. A few more cryptocurrency exchanges could still undertake staff cuts, and these cuts won’t be exclusive to only small exchanges.

Top U.S. platform Kraken, which planned to grow its staff by hiring 800 new employees, was forced to instead reduce its staff at the Halifax Service center in Canada as a “cost-saving measure.”

Kraken CEO Jesse Powell confirmed at the time that the firm released 57 employees at the center because “business needs change.”

The 2018 crypto decline has affected many startups, but the performance of giants like Coinbase show that the market retains the potential to experience further growth.

At the time, job cuts may be necessary, but many cryptocurrency companies and startups see partnerships and acquisitions as an avenue to continue expanding in a market that is increasingly in need of another growth spurt similar to the 2017 boom.

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