Following unrest in the cryptocurrency industry following the demise of the FTX exchange, Amber Group has continued to lay off employees globally. Bloomberg reported on the delay of a planned funding round by the Singapore-based organization, citing sources with knowledge of the matter. The organization had intended to complete its workforce reduction in November, but the lingering crypto winter has compelled it to make further cuts. According to the source, the company’s European workforce is currently under ten.
Amber was valued at $3 billion in February this year following a funding round.
The collapse of crypto exchange FTX last month further shook confidence in digital assets and has itself triggered a series of further bankruptcy filings. BlockFi and Bitfront have filed for Chapter 11 protection, while Genesis has been forced to publicly deny it is planning a similar move following rumours it was in difficulties.
Earlier this week, it came to light that Bybit and Swyftx were also laying off staff due to the crisis in the markets.
Dubai-based Bybit’s CEO Ben Zhou tweeted on Sunday that the cuts at his firm would affect 30 percent of the staff worldwide. He said the company was refocusing its efforts given the deepening bear market.
Australian exchange Swyftx said it would cut 90 team members, representing 35 percent of its staff.
The latest layoffs add to 75 cuts in August.
Recent developments caused prominent economist Paul Krugman to write in a New York Times op-ed that the crypto market may not recover.
He argues that very few digital assets had managed to prove their worth in the real world.
While few have gone as far as Krugman in pronouncing the death of the crypto sector, other major names have predicted more trouble ahead. Standard Chartered has said that investors have not yet factored in the potential for a drop of a further 70 percent in Bitcoin prices next year.
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