Rain Financial, a crypto exchange based in Bahrain, has cut dozens of employees amid a downturn in digital assets, people with direct knowledge of the matter told Bloomberg. As cryptocurrencies and global markets continue to slow down, this has in turn impacted businesses across the globe. According to Rain Financial CEO Joseph Dallago, the exchange has had to make tough decisions to be able to navigate through such a period when the entire cryptocurrency market has bearish sentiment. Furthermore, the exchange claims that it can confirm that it has a downside to their Rain workforce.
Exchanges are slashing their workforce
Earlier this week, one of the leading crypto assets exchange Gemini also slashed its workforce by 10%. However, the exchange never disclosed the number of employees cut, still according to the LinkedIn page of the exchange there are more than 1k individuals who are giving their effort for the growth of the firm. This data translates that in the company there would be more than 100 jobs.
This is reportedly the first time Gemini has announced layoffs since its inception in 2014. The cuts come amid a currently bearish crypto market and macroeconomic conditions when job reductions are increasing. According to Layoffs.fyi, almost 15,000 people lost their jobs last month globally at start-up companies.
At the time of slashing it was noted that the reason for slashing was similar to what is happening now. The sagging crypto market is one culprit because of which the platforms have to make tough decisions. Crypto prices have declined this year from the highs reached last November. As a result, trading volumes at crypto exchanges have dropped, including that of Gemini.
Gemini had less than 2% market share in last month’s crypto trading volume, as opposed to market leader Binance’s 64%, according to The Block Research.
Rain has raised funds earlier this year
Rain has between 251 and 500 employees, according to Crunchbase, while LinkedIn puts the number at 501-1,000. Rain Financial raised $6 million in January in a round of financing led by Middle Eastern venture capital firm MEVP Capital with Coinbase as one of the participants. It was the first cryptocurrency exchange to receive a crypto-asset service provider license from the Central Bank of Bahrain.