nansen has become the latest company in the embattled cryptocurrency sector to cut jobs.
The blockchain analytics provider announced on Tuesday (May 30) that it will be cutting 30% of its staff after years of rapidly scaling.
in a statement shared on Twitter, CEO alex svanevik He said the growth "caused the organization to take over acreage that's not really part of Nansen's core strategy." He also said that the past year has been "brutal" for the cryptocurrency sector.
“While we have seen revenue diversification across enterprise and institutional clients in the past year, our cost base is too high relative to the company's current situation,” Svanevik said in the statement. "We have several years of experience, but our priority is to build a sustainable business."
Nansen's job cuts come in the middle of a year that began with a wave of layoffs in the cryptocurrency sector sparked by a market downturn and exacerbated by the collapse of FTX. coin base cut 20% of its staff in January, its third round of layoffs since June of the previous year. That month he also saw crypto lender Genesis to declare bankruptcy after laying off 30% of your staff.
The industry has also received increased attention in recent months as regulators around the world unveil new guidelines for digital assets.
For example, the global securities watchdog International Organization of Securities Commissions (IOSCO) presented last week the first international project for regulating the crypto sector. The group's officials said they hope their ideas will lead regulators to be more direct in their approach to cryptocurrencies.
Around the same time, Hong Kong Securities and Futures Commission (SFC) launched its Conclusions of the Consultation on the Proposal of Regulatory Requirements for Operators of Trading Platforms for Virtual Assets Licensed by the SFCdetailing the special administrative region rule book ahead of a cryptocurrency licensing regime that will go into effect on June 1.
“Hong Kong has been taking steps to become a cryptocurrency hub, even as the digital asset sector and regulators clash elsewhere in Asia,” PYMNTS wrote May 23. "Cryptocurrencies remain completely banned in mainland China."
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