Lemon Cash, an Argentinian crypto company, lays off over 200 employees to adjust to current market conditions, raising questions on how many companies will collapse in the crises.
Another crypto company Lemon Cash is cutting off 38% of its workforce due to the current market conditions. The Argentinian crypto exchange came to this decision in late November 2022, declaring the step as a heavy one to take. In total, this move will affect about 270 employees in the crypto firm. However, Lemon Cash also wished to convey the necessity of this layoff to progress its business.
It is a surprise, despite the shaky that most enthusiasts are standing on while hoping for the best soon. Lemon Cash is one of many companies that have come to the tough decision of letting employees go. Recently, Coinbase announced laying off over 900 of its employees due to similar situations.
Related: Coinbase Lays off 950 Employees Amid Crypto Market Downturn
With such issues clouding the space, there is still a lot of worry about how the industry will turn out and what other companies might face the same decisions.
FTX was a minor investor in Lemon Cash
At the beginning of 2022, Lemon Cash held a funding project in which FTX participated. According to an interview by Bloomberg Linea, FTX was a minor investor in its Series A. Even though the collapsed crypto giant took part the least, it still impacted the Argentinian firm. Lemon Cash also mentioned that at the time, FTX was a non-issue as it had huger investors, including Cadenza, Valor Capital Group, and more.
Lemon Cash also assured its investors that it managed to withdraw all user funds before it was too late.
Related: SBF hints at repaying FTX investors via a new company.
The exchange also mentioned the lack of due diligence for not informing the public of FTX’s involvement. Nonetheless, it realizes that its time to improve its services while focusing on core cogs in its machine for smoother running.
Circle CEO thinks there will be more downfalls
The recent cut moulds the company for the ongoing crisis but could adversely affect its customer base. On that note, Circle’s CEO, Jeremy Allaire, thinks this is not the end of obstacles within the industry. According to him, some companies will not survive the crypto winter, bringing more insolvencies and shutdowns.
Related: BlockFi files for bankruptcy as it plans on platform restructuring
In an interview with CNBC, a critical pain point is how jurisdictions handle crypto regulation to avoid similar situations. Jeremy, all the same, thinks that crypto is still a hit despite everything that is going on. Furthermore, the better stand the crypto firms on their principles to create a safe environment for their investors, the higher their chances of weathering the storm.
