The fall in the crypto markets that occurred a few months ago had many consequences. As the crypto industry slowly gets back on its feet, some companies are having to deal with the inconvenience caused by the downtrend in cryptos. As a result, there are massive layoffs in a crypto exchange in the Middle East.
Mass layoffs at Rain Financial
The price of many cryptos has fallen over the past few months. Although the trend is reversing, there are tensions in several businesses based on crypto assets. While some investors remain optimistic and patiently wait for the crypto rebound, others are forced to make drastic decisions.
As we know, many states are wary of cryptocurrencies and are reluctant to officially adopt them. However, many exchanges have been able to settle in the Middle East, including Rain Financial. Known as one of the largest stock exchanges in the Middle East, Rain Financial Inc has had to contend with market fluctuations.
To do this, he terminated the contracts of certain employees. According to the statements of the persons concerned, the platform laid off dozens of employees because of the crypto crisis that occurred a few months earlier.
For the CEO and co-founder of the exchange, this decision was difficult to make, however, it had to be done so that the company could survive these dark times. Note that Rain Financial is backed by Coinbase Ventures and venture capital firm Kleiner Perkins. It is a company that employs about 500 people. Therefore, mass layoffs in this crypto exchange are perhaps the best solution to keep the company afloat.
Middle East: Crypto hub?
While the Middle East was reluctant to adopt cryptocurrencies, we are seeing more and more crypto exchanges there. Between Binance in Dubai and CoinMENA in Bahrain, the Middle East is becoming a hub for crypto exchanges. However, the trend seems to be intensifying in Bahrain.
We notice more and more crypto activities in this part of the world and even the mass layoff in a crypto exchange does not change much. Large crypto exchanges find their place there and develop according to the development of cryptographic assets.
In 2019, Rain Financial received approval from the Central Bank of Bahrain and since then it has been doing business there. As a result, it became the first licensed crypto platform in the country. The expansion of crypto exchanges is an asset for the development of these assets. The more ways there are to acquire them, the more people are tempted to go for it.
However, the market capitalization of cryptocurrencies has fallen significantly since last March. Its value has gone from $2 trillion to $1.25 trillion. The sector has therefore lost nearly 50% of its value in a few months and the dismissal at Rain Financial is almost justified.
The fall of the crypto markets is a blow for both investors and companies. Indeed, the downtrend affects everyone and causes some inconvenience. To stay afloat, Rain Financial had to lay off dozens of employees. Hopefully the market will recover quickly and situations like this won’t happen again.
Source : finbold
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Middle Eastern crypto exchange lays off massively due to falling markets
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