Reducing Expenses in a Bear Market
Blockchain analytics firm Chainalysis has announced that it is cutting an additional 15% of its staff, citing difficult market conditions. This decision comes as the company seeks to reduce expenses due to the ongoing bear market in the cryptocurrency industry.
Commitment to Long-Term Success
A representative from Chainalysis confirmed that approximately 135 employees will be affected by the staff reduction. While the company remains optimistic about its long-term success, it acknowledges the need to grow efficiently and reduce expenses in light of the current market conditions.
Focus on Building Trust in Blockchains
Chainalysis Vice President of Communications, Madeleine Kennedy, emphasized the company's commitment to its mission of building trust in blockchains. The firm aims to work closely with government agencies, financial institutions, and cryptocurrency businesses to strengthen the industry.
Second Round of Cuts this Year
This is the second round of job cuts for Chainalysis in 2021. The ongoing bear market in the crypto industry has resulted in decreased demand for the company's commercial products. In February, Chainalysis had already laid off 40-50 employees as part of a reorganization to adapt to the challenging market conditions.
Market Challenges and Bitcoin's Range-Bound Performance
The digital asset market capitalization has declined by 64% from its peak almost two years ago. This year, the market has experienced low volatility, liquidity, and trading volumes, with Bitcoin struggling to surpass the $30,000 resistance level. The leading cryptocurrency has remained range-bound for the past six months.
Focus on Marketing and Business Development
A recent Forbes report suggests that the majority of the job cuts at Chainalysis will come from marketing and business development teams focused on the private sector. The company has confirmed the accuracy of this information.
A Widespread Trend in the Industry
Chainalysis is not the only crypto and blockchain company making staff reductions. Binance.US, for example, had to let go of a third of its workforce in September due to increased regulatory pressure. Similarly, venture-backed blockchain firm R3 cut 20% of its staff last month.
