Luno, owned by the Digital Currency Group, said Wednesday it would cut 35 percent of its total workforce, the latest in a slew of companies in the digital asset sector to cut workforces to avoid a slump in the cryptocurrency market. to endure.
“2022 has been an incredibly tough year for the wider tech industry and the crypto market in particular,” Luno said in a statement, adding that growth and revenues have been impacted by the downturn.
Last year, more than a trillion dollars in value was wiped out of the crypto sector, with rising interest rates exacerbating concerns of an economic downturn. The crash led to high-profile bankruptcies of key industry players such as crypto hedge fund Three Arrows Capital and Celsius Network.
Still, the biggest blow came after major exchange FTX filed for bankruptcy protection in November. Its rapid fall has led to tight global scrutiny of how crypto companies hold funds and conduct business.
UKTN, which first reported job cuts at Luno, said the downsizing would affect more than 330 of its roughly 960 workers.
Last week, the lending unit of crypto firm Genesis filed for bankruptcy protection from the US as it owed creditors at least $3.4 billion after being toppled by the crypto market.
