The crypto market is not for the faint-hearted; there are lows and highs and getting the right predictions to call for miracles. This is the reality ShapeShift is battling with at the moment. The firm is finding its remedial solution in laying off its employees. This could be a short term solution given the prevailing market conditions. The market mood can only be likened to a “harsh mistress”.
The action taken by the crypto exchange ShapeShift has seen a total of 37 employees get laid off representing a 30% workforce reduction. While breaking the news, the firms CEO, Erik Voorhees argued that the turbulent crypto market has forced the outfit to make the decision. He added:
“Today, we let 37 employees go, reducing the size of our team by a third.” He goes on to add: As a company, our greatest and worst financial decision is the same: to embrace substantial exposure to crypto assets. Much of our balance sheet is comprised of them. We accept the volatility, we accept the risk”.
More Crypto Players Following Suit
More Firms looking for a short term solution for the biggest bear market to hit the crypto sphere. The move might not have any impact on ShapeShift but the trend is worrying with more firms following suit. 2018 has been a huge challenge for many market players but the same firm and others like Bitmain and ConsenSys have been on an expansion spree.
2017 saw ShapeShift exchange record massive growth of over 3,000% at a time when the entire crypto verse valuation hit a high of $800billion. This benefited all major exchanges with most of them recording sizeable volumes as high profile investments poured in. However, the CEO argues that:
“We ride high and fast during the ascents; growing at rates unseen almost anywhere else in the business world. And when the markets turn, the crypto recession is similarly dramatic and severe”.
The Wrong Move at the Right Time
The market is undergoing corrections and most altcoins are recording gains from the drops experienced in 2018. This might not be huge but the rise is giving the investors community hope. To justify the move, Voorhees says:
“As a company, we’ve made a thousand mistakes. The most thematic has been a lack of focus. Here’s the lesson we learned: regardless of any particular project’s marketability, they were pulling our attention in too many directions. They cost financial resources. They required legal review. And then further review and then additional review after that”.
More Layoffs in the Offing
ShapeShift is not alone, Bitmains and ConsenSys have also reduced their workforce by 50% as they reposition themselves for the market and put more focus on their products and services. Layoffs are becoming the order of the day and this is to serve the users and give them a better experience while remaining in business.
The bear market is normal in any emerging markets and the digital money markets are not isolated. This is the opportune time for crypto focused firms to reorganize themselves and chart their way into the future and that is exactly ShapeShift is doing.