Recently, a leading crypto exchange Shape Shift was compelled to lay off 30% of the organization’s workforce, up to 37 representatives of its staff.
Shape Shift organizer and CEO Erik Voorhees states in a letter to the organization and to the users on the platform that the crypto downtrend situations had left the firm with no other reasonable option but to regulate the market decline conditions.
Voorhees said, “Today, we let 37 representatives go, decreasing the span of our group by a third.” He also expressed that this lay off process is very painful, reflected crosswise over numerous crypto organizations in this most recent crypto bear exchange cycle.
Since one of the biggest bull trending markets in the historical backdrop of the digital currency market in 2017, most of the organizations in the business including Bitmain, ConsenSys and Shape Shift forcefully extended their services, often outside of their main business.
Amid that time, Shape Shift reported a huge development rate of 3,000 percent as the valuation of digital currencies surged past $800 billion. Crypto Exchanges were seeing record volumes and businesses in the crypto industry got considerable funding cash from outstanding investors.
Voorhees explained:
Voorhees briefed, we drive high and quick amid the ascents; developing at rates almost anyplace else in the business world. Shape Shift growth rate in 2017 was 3,000%, What’s more, when the business sectors turn, the crypto subsidence is also severe as well as dramatic.
Shape Shift kept running into regulatory obstacles in 2018. The organization started checking know-your-client (KYC) details of their users, a decision that eventually observed the crypto exchange endure a shattering drop in volume.
At that point, the Wall Street Journal ran a story on how Shape Shift had encouraged $9 million in illegal tax laundering claims. Although, Voorhees rushed to dissipate the allegations, stating, we know about the inadequately examined piece composed against us by somebody at WSJ. The suggestions are misleading and disingenuous.
Because of the difficulties exposed in 2018, Voorhees concedes that Shape Shift developed too rapidly, causing basic issues and in the end, they had compelled to lay off its staff.
He concluded by saying that we all are on a venture of growth: I as an individual, Shape Shift the organization, its committed, skilled representatives with whom I’m so favored to work, and crypto as a network. May we discover the quality and regulations to battle through each hindrance toward success; toward a universe which has no barriers, apolitical funds access for all people.