Cryptocurrency Billionaire Announces Mass Layoffs

Cryptocurrency Billionaire Announces Mass Layoffs

Matrixport, the company of Bitmain founder and cryptocurrency billionaire Jihan Wu, announced the layoff of 10% of its employees amid the crisis and low volume in the global market.

The products offered by the company were cryptocurrency trading, lending, and digital asset custody. In addition, mutual funds offered to clients claimed double-digit returns regardless of market conditions.

Apparently the company is aiming for a repositioning of the market. The platform is active in 40 countries, so far with 290 employees.

Cryptocurrency billionaire lays off 10% of Matrixport employees

The general collapse of the cryptocurrency market has affected the activities of another industry billionaire, Jihun Wu, best known for his participation in Bitmain, a company that produces bitcoin mining machines.

According to a report from Bloomberg, this Friday (27), Matrixport’s major cuts are in the marketing arena.

In a press release, the company states that the cuts are not an obstacle to new hires. That is, it is not a withdrawal in the market, but in a strategic area.

For example, COO Cynthia Wu announced that the change in the company’s leadership is intended to improve the company’s regulatory problems.

More people in the legal and compliance sector should soon be hired by Matrixport, which has fired two top executives in recent days.

Company split from Bitmain in 2019

Founded by Jihan Wu, Matrixport was born within Bitmain and sought to operate in new markets outside of cryptocurrency mining.

However, in 2019, Bitmain experienced a crisis in its operations, causing Matrixport to separate from the company. The Chinese magnate will continue to head the company, as will Bitdeer Technologies Holding, another mining company.

In 2022, the FTX crash stunned global cryptocurrency markets, including Matrixport. At the time, 80 of the company’s clients lost money with the SBF brokerage, though Wu’s company denied being insolvent because of the episode.

Thus, the company’s new marketing-related layoffs point to a decline in client acquisition and a strengthening of its legal team amid global regulatory pressure on companies in the marketplace. Because it works with loans, negotiations and investment funds, the Chinese billionaire’s business tries not to suffer.

Remarkably, Matrixport says on its website that its funds earn double-digit returns regardless of market conditions.

The case shows that layoffs continue despite the recent rise of bitcoin in the market, voted the best asset of 2023. In 2022, more than 10,000 people lost their jobs in cryptocurrency companies.

Source: Live Coins