Coinfloor Exchange Laying Off Staff As Cryptocurrency Bear Market Persists

Coinfloor appears to be feeling the full effects of sentiments in the cryptocurrency space turning sour this year. The U.K’s oldest cryptocurrency exchange is set to lay off a majority of its 40 employees as part of an ongoing restructuring.

The firm cutting majority of the staff is an indication that things are not rosy as was the case at the start of the year. Laying off staff will also be a major setback to one of the fastest growing fintech sectors in London.

Coinfloor is yet to make an official announcement of the number of people it will let go. However, Chief Executive Officer Obi Nwosu insists that reductions are a normal occurrence on any company in a growth phase.

“Coin floor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructuring, we are making some staff changes and redundancies,” Nwosu said.

The exchange downsizing and restructuring could as well be because of negative reviews it has received in the recent past. The exchange currently commands a two out of five-star rating in Trust pilot with a poor grade. The poor rating stems from concerns that the company continues to withhold people’s personal information even on turning down their application.

If true, then Coinfloor will become the first major cryptocurrency exchange to embark on a restructuring drive. Exchanges in the sector have seen their returns take a significant hit this year on prices of major cryptocurrencies imploding.

Coinfloor has averaged about $1 billion worth of trades over the past 12 months. However, the large amount of volume appears not to be enough to keep the company going, thus the restructuring drive.  The U.K exchange won’t be the only exchange to embark on anaggressive cost-cutting drive.

A number of exchanges could follow suit, as most of them continue to rethink their business models. A change of strategy has had to come into play following a change of sentiments and prospects in recent months.

Unlike when Coinfloor was getting started in 2013, the number of cryptocurrency exchanges has soared to over 200 exchanges. The increase essentially means increased competition as the market has become more crowded.  The oldest and even the most established exchanges are struggling to attract new users something that appears to be affecting profitability.