CoinDCX cuts workforce by 12% amid market struggles
What's the story
Cryptocurrency exchange CoinDCX has laid off 12% of its workforce due to shifting business priorities and a challenging environment.
Founders Sumit Gupta and Neeraj Khandelwal attributed the company's struggles to the continued bear market and TDS on domestic exchanges, which have significantly affected trading volumes and revenues.
In response, CoinDCX has implemented cost optimization measures, invested in automation, and refocused its initiatives to align with long-term strategies.
Insights
How are laid-off employees being supported?
The company is providing support to laid-off employees, including severance pay, an additional month's salary, owed variable pay, and incentives.
Unused leave encashment, extended health insurance and wellness benefits, and counseling support are also being offered.
CoinDCX is dedicated to ensuring the well-being of its workers during this transition while remaining optimistic about the future of cryptocurrency in India, they said.
Details
What's the reason behind the layoffs?
Indian cryptocurrency start-ups, particularly exchanges, are grappling with regulatory uncertainty.
They have seen trading volumes plummet by 85-90% over the past year due to high taxes and TDS charges.
Despite these challenges, the industry remains optimistic about the future of cryptocurrency in India and is investing in automation to enhance efficiency and productivity.
History
CoinDCX is India's first cryptocurrency unicorn
CoinDCX's new focus is on driving profitability and ensuring sustainable business growth.
As the first Indian crypto unicorn, valued at $1.1 billion in 2021, the start-up is dedicated to fostering growth within the industry.
By resorting to automation, optimizing costs, and aligning its initiatives with long-term goals, the firm hopes to overcome current market challenges.