Brazilian crypto unicorn, 2TM announced that it is in the process of another round of layoffs after it sent 80 of its staff packing in June.
According to a recent update, another 100 employees have been retrenched. The intense state of the present economy is one of the contributors to this move and “the economic adversity continues.”
2TM Group is a Brazilian unicorn that serves as the holding company for MercadoBitcoin.com, Latin America’s largest crypto exchange by valuation. The company secured $250 million in a funding round held in 2021. It became the second crypto unicorn in Brazil with this round which raised its valuation to $2.2 billion at the time.
Sometime in June when the effect of the crypto winter was brewing, the firm published a list of its employees that was fired. Coupled with the harsh market conditions, “the changing global financial landscape, rising interest rates, and inflation have been having a major impact on technology-based companies.”
Likewise, the company stated that the layoffs were necessary as the scenario needed adjustments to create a balance.
This adjustment, the company stated, goes beyond the reduction of operational expenses. Now, 2TM is referring to the unhealthy and unbalanced conditions of the market which has further deteriorated.
2TM Blames Unauthorized Crypto Firms For Multiple Layoffs
Many foreign cryptocurrency exchanges have failed to commit to the standards of conducting due diligence and know-your-customers (KYC) procedures.
Generally, this has affected the integrity of the crypto market as it has been a victim of several breaches. In turn, customers’ trust in digital assets has dwindled and the lack of interest has shown in the gradual crash of the market.
Notably, the legal framework approval for crypto operations has not reached many, reducing the number of regulated crypto entities out there. Conversely, the crypto ecosystem suffers the effects of all of these shortcomings.
Non-fungible token (NFT) marketplace OpenSea is one of the affected digital assets firms that had to also cut down on its workforce.
In July, it reduced its employee headcount by almost 20%. Bitpanda, an Australian-based crypto exchange also slashed its staff strength from 1000 to 730. More institutional retrenchment exercises are ongoing as the crypto winter is still beating hard with fluctuating asset prices.