Jan 25 (Reuters) – Digital Currency Group-owned Luno said on Wednesday it would cut 35% of its total workforce, the latest in a string of digital asset sector firms cutting jobs to cope with a slump in the cryptocurrency market. :
“2022 was an incredibly challenging year for the broader tech industry and the crypto market in particular,” Luno said in a statement, adding that its growth and revenues were impacted by the recession.
More than a trillion dollars worth was wiped out of the crypto sector last year, and rising interest rates have fueled fears of an economic downturn. The crash led to the bankruptcy of key industry players such as Three Arrows Capital and crypto hedge fund Celsius Network.
However, the biggest blow came after major exchange FTX filed for bankruptcy protection in November. Its rapid decline has prompted tough global regulatory scrutiny of how crypto companies hold funds and conduct business operations.
CNBC, which first reported the job cuts at Luno, said the cut will affect more than 330 of its 960 employees.
The credit arm of crypto firm Genesis filed for US bankruptcy protection last week, owing creditors at least $3.4 billion after the crypto market collapsed.
Reported by Manya Saini in Bengaluru; Editing by Shinjini Ganguly and Anil D’Silva
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