LONDON • Coinfloor will cut staff as the UK bitcoin exchange restructures its operations amid a sell-off in cryptocurrencies.
“We are currently working on a business restructure to ensure that we focus on our competitive advantages in the marketplace,” said Coinfloor CEO Obi Nwosu. “As part of this restructure, we are making some staff changes and redundancies.” He declined to say how many jobs will be cut.
Financial News reported earlier yesterday that the London-based exchange will cut most of its approximately 40 employees, citing two unidentified people familiar with the matter. Nwosu told Financial News it’s normal business practice to adjust staff numbers according to changes in the market environment, and that the exchange has seen significant change in trading volumes in the market.
Cryptocurrencies crashed to earth in 2018 after the speculative frenzy that fanned a rally last year fizzled amid scrutiny from regulators and the slow pace of institutional adoption of digital assets. Having lost over half its value so far this year, bitcoin is now trading in a relatively tight range.
Hundreds of crypto exchanges have sprung up in recent years. However, the number of transactions in bitcoin has declined significantly from late last year, so the volumes may be too low to sustain all of the exchanges.
Coinfloor, which started in 2013, said its the oldest bitcoin exchange in the UK. The company is backed by Taavet Hinrikus, co-founder of UK fintech TransferWise Ltd, and venture capital firm Passion Capital, according to its website.