ShapeShift Lays Off 37 in Latest Round of Crypto Industry Cutbacks

“2018 declared a rough year. While this new one starts upon some painful reorganization, we’re invited and optimistic for 2019,” he wrote.
In among the most transparent testimonies of its type thus far, Voorhees detailed several issues that functioned against Shapeshift heading to this decision. Besides the mounting legal concerns which have shrunk the whole sector, Voorhees claimed that the business grew too fast and spread out its efforts into too many product areas (like CoinCap, it’s CoinMarketCap competition, and KeepKey, an acquisition).

Image Charge: Piotr Swat/Shapeshift

Though Voorhees stated the firm had hedged for these dangers, it wasn’t enough to allow the enterprise to stay in its current staffing level.

In a blog article published Tuesday, CEO Erik Voorhees wrote which the startup had put off 37 employees, or even a third of its staff. He described the process as “a deep and painful reduction, mirrored across many crypto businesses in this latest marketplace cycle. ”

Since CoinDesk previously reported, ethereum production studio ConsenSys declared a 13 percent staff reduction early December. More recently, discussion startup Status and bitcoin mining giant Bitmain verified that they were clipping staffers.

Crypto market ShapeShift has announced a round of layoffs, mentioning a range of difficulties such as a challenging market climate.
Additionally, the firm ’s decision to start doing know-your-customer checks on clients caused a huge reduction in clients and users. Last, transactions, generally speaking, dropped across the board, causing a general fall in revenue, Voorhees wrote.