bitcoin and cryptocurrency exchange CoinFLEX has laid off a “significant” portion of its team in an effort to cut operating costs as it seeks a full recovery with withdrawals halted last month.
The company announced the decision in a weekly update today, saying it was cutting costs to seize “any chance to become a successful business.” For now, that means a simpler company.
Cryptocurrency Company CoinFLEX Says Reducing Employees Will Cut Costs By 50-60 Percent
The firm said it needed to lay off team members in all departments and regions to be successful in its recovery plans. According to CoinFLEX, this reduced the cost base by 50-60% and the remaining team focused on product and technology.
“We will monitor costs to ensure we operate as efficiently as possible and scale as volumes return,” the firm said in a blog post.
“The goal is to stay sized appropriately for any organization considering a potential acquisition or partnership opportunity with CoinFLEX.”
CoinFLEX stopped withdrawals last month due to extreme market conditions and uncertainty about a counterparty, but reassured users that this counterparty was not one of the busier lenders or embattled hedge fund Three Arrows Capital.
At the time, the exchange offered an estimated timeline for withdrawals to be processed by June 30. CoinFLEX has planned to raise funds to relaunch the platform by issuing a new token, Recovery Value USD (rvUSD), with the promise of 20% annual returns.
*Not investment advice.