Lemon Cash, a cryptocurrency exchange with operations in Brazil and Argentina, made a significant move by laying off 38% of its workforce, totaling about 100 employees.
The reason for this action is the current hostile environment that permeates the industry. A Lemon Cash statement read that there is no solution in sight for a revival of the sector.
Unfavorable market conditions continue to hammer heavily on the Latin American (Latam) cryptocurrency sector. This adverse condition has forced crypto organizations in that region to lay off a good number of their workforce.
Lemon Cash is the latest Latam-based crypto exchange to join the list. Marcelo Cavazzoli, the company’s chief executive, released an official statement regarding the layoff.
In the statement, Cavazzoli expresses his sadness at the layoff announcement. But he also reiterated that the job losses are due to the market’s unfavorable nature.
This FTX implosion continues to shake the crypto market heavily. Major cryptocurrencies, especially Bitcoin, recorded huge losses following the FTX crash.
As a result, the fall has propagated worries concerning the integrity of the crypto industry as a whole. Cavazzoli added that VC investments in crypto startups are going through a recession, and Lemon’s observation shows that this trend has existed for a while.
The CEO further said it’s noteworthy that it’s not only Latam that is experiencing a crypto market downturn. It is a global phenomenon.
The number of job cuts at this exchange is the highest across Latam states. Comparing the number of employees Lemon Cash fired with the vacancies other crypto companies in that region want to fill proves this fact.
Lemon Cash Halts Expansion Plans
Before the job cut, Lemon planned to expand its operations to Chile, Colombia, Uruguay, Peru, and Ecuador by the end of this year. However, the company will likely have to abandon this plan.
Lemon Cash is not the first cryptocurrency exchange to sack its employees. Buenbit, an Argentine cryptocurrency exchange, recently reduced its workforce by almost half, leaving only 80 workers.
However, a recent Coingecko study found that only 4% of all tech layoffs are related to the cryptocurrency industry.
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