Home
News
- 1 Chainalysis recently shared that they are cutting down their workforce by nearly 15%.
- 2 The layoff by the blockchain analysis firm is the second round of cuts.
Chainalysis, an American blockchain analysis firm, laid off nearly 150 employees, or over 15% of its workforce of 900. According to a Forbes report, on October 2, 2023, Monday, the CEO of Chainalysis, Michael Gronager, shared an email to the employees. He cited the company broadened its retreat from the commercial market while concentrating on more stable government contracting.
The Layoff Announcement by Chainalysis
As per the report, the recent layoff is the second round of cuts for Chainalysis. Last year, the firm raised $170 Million in a funding round that valued the blockchain analytics software developer at $8.6 Billion.
Madeleine Kennedy, vice president of communications at the blockchain analysis firm, said “This reorganization reflects our ongoing strategic shifts to balance our growth aspirations. Kennedy further added, “We are going to focus on profitability and maturity and to ensure that we are agile in light of evolving market forces.”
As noted in the report, the majority of reductions will again be from marketing and business development teams focused on the private sector. It is because their jobs have become significantly more difficult in an environment where the price of Bitcoin is down 60% from its all-time high of $69,000 in November 2021.
The “Unwanted” Market Conditions
Due to the rough market conditions, trading revenue and blockchain activity dwindles frequently. Eventually, it reduces the need for Chainalysis products that help cryptocurrency exchanges and other companies identify illicit transactions and maintain regulatory compliance.
As per the following analysis, the company had to reduce its growth expectations for the rest of this year. However, the blockchain analysis firm grew 50% from mid-2022 to mid-2023.
As Kennedy said Chainalysis has ample cash (though she would not provide concrete numbers) to ride out this bear market. As reported “the company moves further to the public sector, which already provides 70% of its revenue, it is looking to expand on the investigative power of its core offerings with an eye on the future needs of governments.”
Kennedy also added “The public sector still has a lot of way to go in creating a safe and regulated environment. In addition to anti-money laundering regulations, there’s still lots of other regulatory issues like prudential soundness, market conduct, and consumer protection that need to be addressed.”
In a recent X (formerly Twitter) post, the blockchain analysis firm added its newest “Geography of Cryptocurrency Report.” As the above chart shows, “the region accounts for an estimated 8.8% of global crypto activity over the last year.”
Our newest Geography of Cryptocurrency Report preview looks at Eastern Asia. The region accounts for an estimated 8.8% of global crypto activity over the last year. As recently as 2020 though, the region was a world leader in tx volume. https://t.co/ttpYQFnLrS pic.twitter.com/6uZiDC1BZV
— Chainalysis (@chainalysis) October 2, 2023
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
