The extreme pullback in the cryptocurrency market in recent months has forced Coinbase, Bybit, and CryptoCom to reduce headcount. Now, Indian trading platform Vauld has stepped up into the league and has announced a whopping 30 percent layoff that includes Pantera and Coinbase as investors.
According to a company announcement available on its website, co-founder and CEO Darshan Bathija said the decision to reduce the workforce was made last Friday (June 17) and was prompted by the economic slowdown and the ongoing market downturn.
Additionally, Vauld will cut executive compensation by 50%, pause most supplier engagements, slow hiring and reduce marketing spend.
The reduction has been made across every team in the organization with a focus on marketing and HR as the company plans to slow down efforts associated with those teams, Bathija added.
Earlier this month, Coinbase reduced its global workforce by 1,100, with an estimated 8% coming from its Indian operations. Bybit laid off an undisclosed number of its 2000 employees, while CryptoCom reduced its workforce by 5%, equivalent to around 260 employees. Similarly, crypto exchange Gemini announced its first-ever job cuts, in which it will lay off 10% of its existing staff.
Fight against the crypto winter
The Singapore-headquartered startup blamed uncertain market conditions and “uncertainty in the eyes of customers” due to the current upheaval in the market for the “painful” decision. Vauld continued hiring in 2022 despite early signs of an economic slowdown, Bathija acknowledged.
“We know that resilient companies are built in bear markets. Sanju and I started Vauld last crypto winter, and we’re here because we carefully managed spending back then. We believe these measures are necessary to be very strong in the long term,” he said.
The employees affected by the cut will receive two months’ salary as severance pay, keep the joining/entry bonus and benefit from health insurance for themselves and their immediate family members for 12 months. Vauld will also help the departing employees find jobs, Bathija added.
Bouquet of services
Besides trading Bitcoin, Ethereum, XRP, BAT, XLM, USDT, USDC, BUSD, TUSD and DAI, Vauld also offers some crypto investor creation services. These include cryptocurrency-leveraged fixed deposits, as well as loans and advances. Although Vauld is headquartered in Singapore, the majority of its employees work in India.
Founded in 2018 by Darshan Bathija and Sanju Kurian, Vauld has raised $27 million to date. The latest round of funding closed in July 2021 raising $25 million in Series A funding led by PayPal founder Peter Thiel’s Valar Ventures. Also participating in this funding round were Pantera Capital, Coinbase Ventures, CMT Digital, Robert Leshner, Cadenza Capital, and Gumi Cryptos.
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