2TM cuts workforce due to slowdown in crypto market 2022

The slowdown in the crypto market for the past few months has had a major impact on the firms belonging to this segment. 2TM Participacoes, the firm that runs Brazil’s Mercado Bitcoin, has sacked around 90 employees. This is more than 10 percent of its workforce. However, it did not specify the number of employees fired.

2TM cuts workforce due to slowdown in crypto market

A statement issued by the firm said that this step was necessary due to the macroeconomic situation. 2TM said it is facing difficulties due to rising interest rates, high inflation, and the global financial situation. A Brazilian newspaper reported about layoffs in 2TM. In November last year, the firm had raised around $50 million in funding from a few investors, including Tribe Capital.

The firm’s potential deal with Coinbase was reported earlier this year. This could have given Coinbase a controlling stake in the firm. However, talks on the deal ended early last month.

Financial difficulties have also increased for Coinbase. Coinbase recently said that the firm would extend the moratorium on hiring. “Earlier this year we planned to triple the size of the firm,” Emilie Choi, President and Chief Operating Officer of Coinbase, explained in a blog post. Given the current market situation, we believe it makes sense to reduce hiring. Will be.” The bulk of Coinbase’s revenue comes from crypto trading. The exchange had a trading volume of $309 billion in the first quarter of this year.

This figure is significantly lower than the trading volume of approximately $547 billion in the fourth quarter of last year. Some other firms belonging to the crypto segment have also announced a moratorium on hiring or reduction in workforce. These include Bahrain’s Rain Financial.

2TM is the second firm to get investment from Japan’s Softbank which has reduced its workforce in Latin America. Last month, Mexican crypto exchange Bitso, which was invested by SoftBank, laid off nearly 80 of its more than 700 employees. Selling in the crypto market in recent months has caused the prices of cryptocurrencies like Bitcoin and Ether to drop significantly from highs.

Sunil Kumar writes about smartphones and laptops for Gadgets 360 Tech News based out of Mumbai. He is Deputy Editor (Reviews) at Gadgets 360 Tech News. He has written frequently about the smartphone and PC industry and has an interest in photography as well.

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