UK’s oldest virtual currencies exchange operator has announced job cuts for a better part of its 40-strong staff in what the company describes as a restructuring process.
Coinfloor is among the pioneers of the cryptocurrency exchange business in the UK. Founded in 2013, the company has seen good business days but with more players eyeing the UK market, the firm is struggling for survival.
Confirming the news, the company CEO, Obi Nwosu stated that, “Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies.”
Changes in crypto market dynamics
Nwosu in a statement acknowledges that notable changes in the firm’s market volume have inspired the workforce cut. Cryptocurrency prices fell drastically in the beginning of this year and most virtual currency exchange platforms have not fully recovered.
Rival firms entry
It has not been business as usual for Coinfloor as several other virtual currency exchange platforms have set up operations in the UK.
Gemini Cryptocurrency, associated with the Winklevoss brothers, is reportedly planning entry into the European market. It should be remembered that the two brothers were the most affected by the drop in the crypto market but sources close to the two co-founders reveal that the deteriorating market conditions for cryptos will not deter their company from expanding to other markets.
Coinfloor is not the only exchange platform feeling the heat of changes in cryptos market dynamics. Back on September 6 Bloomberg reported that Kraken, a US-based operator with interest in Canada and Japan among others, was laying off 57 of its North-America based employees.
The Company’s CEO, Jesse Powell, squashed rumors that the move was in response to a security breach but rather was a cost-saving measure. He further insisted that Kraken was hiring staff in other regions.
There are over 200 virtual currency exchange platforms with new entrants coming up with faster and more secure ways of trading in cryptos. Old firms like Coinfloor need to adapt to these dynamic changes or they will be put out of business by these startups.