FalconX has cut about 10 percent of its global workforce to prepare for a prolonged downturn in the cryptocurrency market. Cointelegraph reported on Aug. 3 that FalconX is also adjusting its Singapore business strategy, withdrawing its local licence application and planning to focus on cryptocurrency derivatives trading.
FalconX is a digital asset prime broker that acquired cryptocurrency ETF issuer 21Shares in November last year. Before the layoffs, it employed about 350 people in the United States, Britain, Singapore and Hong Kong.
FalconX plans to maintain its Asia base while expanding its business in Europe.
The layoffs have added FalconX to the list of cryptocurrency companies that have scaled back operations amid the market slump. Coinbase, Crypto.com, Luno and Gemini, as well as infrastructure firm BitGo, have also carried out layoffs.
As bitcoin and other digital asset prices have fallen from last year's highs, trading volumes and retail investor participation are slowing. Some analysts believe bitcoin has not yet reached a market bottom.
Chi-gyu Hwang
delight@d-today.co.kr