Lemon Cash, a crypto exchange with operations in Argentina and Brazil, has actually rendered 38% of its labor force out of work, on Friday.
One hundred workers were laid off as an outcome of the negative market environment and the absence of a clear turn-around outlook in the equity capital sector, as mentioned by Lemon Cash.
The Latin American crypto landscape continues to be buffeted by negative market conditions, requiring crypto companies such as Lemon Cash to provide the pink slip to a significant variety of workers.
The CEO of Lemon Cash, Marcelo Cavazzoli, revealed the layoff in a Medium post entitled “Open Letter to the Community.”
In the letter, Cavazzoli revealed his unhappiness and pointed out the “challenging international context” as the factor for the task loss.
Crypto Exchange Terminations Come Following FTX Collapse
The choice by Lemon to sack this variety of workers follows the current collapse of crypto exchange FTX, which shook the marketplaces.
Major cryptocurrencies, especially Bitcoin, experienced the impact of the FTX crash, which propagated fret about the crypto’s general stability.
According to Cavazzoli, the start-up financial investment sector is experiencing a “recessionary era,” and Lemon knows that this pattern will continue for a long time.
“There is an international context of which we are a part and to which we have to adapt,” the CEO explained.
It is very important to keep in mind that Latin America is not the only area experiencing a decrease in the crypto market; this circumstance is an around the world concern that has actually continued throughout the whole year – even prior to the FTX catastrophe.
It appears that Lemon Cash’s layoffs are without a doubt the biggest in the Latin American area. This is figured out by comparing the variety of workers it chose to let go to the variety of positions that other crypto business in the area chose to fill.
Lemon Cash Expansion Plans On Hold
As an outcome, Lemon is forced to shelve growth prepare for Colombia, Ecuador, Chile, Uruguay, and Peru by the end of 2022.
Meanwhile, Lemon Cash is not the very first cryptocurrency exchange to minimize its labor force.
Another Argentine crypto exchange, Buenbit, cut almost half of its workers, rendering 80 workers.
Coinbase supposedly slashed roughly a thousand workers in May of this year. Last month, 40% of the personnel of the Indian Exchange WazirX were provided the door.
According to a November 14 analysis by CoinGecko, crypto layoffs represent just 4% of all tech layoffs. Tech titans such as Meta and Twitter have actually gotten rid of extra positions.
Crypto overall market cap at $797 billion on the weekend chart | Featured image from Imgflip, Chart: TradingView.com