In an evolving crypto environment, market players reshape their strategies accordingly. Recently, in response to a downturn market and dwindling commercial demand, blockchain analytics firm Chainalysis announced the discharge of an additional 150 employees, which represents more than a quarter of its workforce. This emanates from CEO Michael Gronager’s communique with staff members.
A continuous dip in cryptocurrency prices over the past year seems to have dampened interest in Chainalysis’ product offerings. This development has pushed the firm to veer from the commercial market and focus instead on authorities – a strategy envisaged to ensure a steady inflow of revenue.
In particular, those in marketing and business development roles that cater primarily to the private sector will primarily bear the brunt of these layoffs. The job environment for these roles has grown increasingly difficult as the price of Bitcoin plummeted 60% from its all-time peak of $69,000 in November 2021. This triggered a diminishing interest in blockchain activity and lessened trading revenue, thereby reducing the demand for solutions offered by Chainalysis that assist cryptocurrency exchanges and businesses in identifying illicit transactions and guaranteeing regulatory compliance.
Pinning its future on the public sector, Chainalysis plans to bolster its primary offerings’ investigative capabilities to cater to the future requirements of governments. The firm’s spokesperson, Madeleine Kennedy stated, “The public sector still has a lot of way to go in creating a safe and regulated environment.” She also disclosed that the company has adequate cash reserves to bear the bear market and will shift gears towards “profitability and maturity.”
These circumstances mark the second round of dismissals in 2023 for Chainalysis, valued at $8.6 billion in 2022. Back in February, the company announced plans to cut less than 5 percent of its 900-strong workforce.
This trend seems contagious among crypto companies. Several of them, including Coinbase, have curtailed workforce sizes in response to certain collapses and bankruptcies within the sector. Other examples include New York-based cryptocurrency exchange Gemini, which disclosed a 10% workforce cut; and crypto infrastructure provider Qredo, which declared its plans to curb staff and expenditures amidst the market challenges.
Source: Cryptonews
