Superhero Shelves Merger Plan With Crypto Exchange Firm Swyftx
Since the FTX debacle, several regulators have focused on the crypto space. Analysts believe the crypto sector will witness more regulations in 2023. According to reports, Superhero, an Australian online investment platform, has shelved its $1.5 billion merging plan with the crypto exchange firm, Swyftx.
Superhero Pauses $1.5 Billion Merger With Swyftx
In a recent email to its users, Superhero announced that it would no longer proceed with its Swyftx merger. The investment firm cited the increased regulatory scrutiny the crypto industry faces in Australia and beyond.
“Due to the present regulatory environment, the company believes it is best for our users that we close the merger and continue as a separate firm,” Superhero stated.
Additionally, the company assured its customers that their assets were safe. This is because Superhero did not share the assets of data of its users with Swyftx.
Meanwhile, both firms first unveiled the merger on June 8th. The aim was to allow trading between crypto and traditional assets. At the time, Ryan Parsons, the co-CEO of Swyftx, noted that the merger would allow both firms to evaluate the interoperability of different assets.
Swyftx Continues To Struggle
Unfortunately, Superhero has decided to shelve the plan. On the other hand, Swyftx has announced different layoffs in the past months.
On August 19th, the crypto exchange reduced its staff size by 21% due to increased inflation and the bearish crypto market. The company also feared a global recession could be on the horizon.
Swyftx announced a second layoff on December 5th, reducing its workforce by 35%. However, the company argued that it had no direct exposure to FTX but was affected by the fallout of its collapse.
Meanwhile, the news of the layoff sparked mixed reactions from the crypto community. A Twitter user, while responding to the announcement, said that he expected this to happen.
Also, the user noted that more bankruptcies could be on the way. On the other hand, another user encouraged the company to keep up the good work and weather through the storm.
Interestingly, some companies have taken advantage of the layoffs to recruit crypto experts into their companies.
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