The ongoing downturn in the crypto industry has caused business to be withdrawn from some companies. Lemon Cash, an Argentina-based crypto exchange has joined the list of several other companies that announced layoffs in order to keep their businesses afloat during the market turmoil. A total of 38% of the crypto exchange’s employees, which makes for about a hundred employees. The company has blamed the lack of a clear recovery deadline in the digital asset and venture capital markets.
Lemon Cash has offices in Argentina as well as Brazil. According to CEO Marcelo Cavazzoli, losses were recorded in both regions.
“We don’t know when the venture capital market will recover, and even less so for a company that is in the hypergrowth phase between Series A and Series C,” said one. CoinDesk . Report quoted Cavazzoli as saying.
About two weeks ago, Cryptocurrency Exchange FTX collapsed due to a liquidity crisis, and eventually declared bankruptcy.
In the ensuing market developments, over $200 billion (approximately Rs 16,30,024 crore) was wiped off the market, leaving the global cryptocurrency valuation now at $828 billion (approximately 67,48,832 crore). rupees).
A variety of other Cryptocurrency company also had to give up their workforce.
In May, Buenbit laid off 45% of its staff, about 80 employees, due to what the crypto exchange called a “global overhaul” in the tech industry. Bitso, another exchange, also laid off 80 employees in May.
For now, the Lemon Cash CEO said, the company is financially comfortable after having raised $16.3 million (about Rs 130 crore) in a Series A funding round led by UK fund Kingsway Capital. led the way and brought its valuation to nearly $45 million (about Rs 365 crore). crore) last year.
“We are not dependent on investment more in the next few years. If the market recovers sooner that would be great, but that’s not something we’re going to run after,” Cavazzoli said.
A significant portion of the capital was used by Lemon Cash to expand in Brazil. The company plans to mark its presence in Chile, Colombia, Ecuador, Peru and Uruguay.