Mercado Bitcoin is one of Brazil’s largest cryptocurrency exchanges. It announced a fresh wave of layoffs amid a worsening economic environment for fintech startups. The exchange stated that this was affecting innovative-based businesses. This was the second round in three-months of layoffs that the exchange had executed.
Brazilian Exchange Mercado Bitcoin Announces a New Wave Of Layoffs
The recent decline in traditional and crypto markets is affecting cryptocurrency companies all around the globe, including Latam. Mercado Bitcoin is a Brazilian cryptocurrency exchange that has made a number of layoffs because of the current global economic situation.
Local media reports that Mercado Bitcoin laid off 15% of its employees on September 1, as part of a series taken by 2TM (the holding company for the exchange), directed at streamlining operations.
In a statement the company also criticised the Brazilian government for ignoring the cryptocurrency bill discussion in favor of activities that relate to the general election. Mercado Bitcoin stated:
The economy is still facing difficulties, while the market environment continues to worsen. [is]Unfair, as the legal framework is not approved for cryptoassets. Players who follow laws are penalized against those companies which ignore them.
Layoffs Aplenty
It is the second time the company has let go employees within three months. In June, the first round of layoffs saw the firing of 90 employees in order to maintain its operations for the future. At that time, the company stated that this move was part of a series of “adjustments” that went beyond just reducing their operating expenses.
Ex-employees from the previous wave of layoffs and this time will also receive benefits packages. These are to assist them in their job search, including continued health insurance, and help them find new work.
Others exchanges have had to fire part of their employees in order to cut costs. Both Bitso (a Mexican-based exchange) and Buenbit (an Argentinian one), had to cut their staff to survive this market cooling.
Mercado Bitcoin received a $200 million investment from SoftBank in July 2021. This was enough to make it unicorn in the largest funding round Latam has ever seen. The exchange closed a second Series A funding round in December and added $50 million in investment.
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