The oldest bitcoin exchange in the UK, Coinfloor has recently released a report stating that it will be laying off a large chunk of its workforce. This has been attributed to the drop in transaction rate the company had this year and also the drop in bitcoin price from the beginning of the year to this time.
Coinfloor to Layoff
Based on the report, Coinfloor with head office in London will be making the tough call of letting go of a large chunk of its workforce in order to adjust to the hard time the bitcoin market is facing right now. Since the exchange is largely dependent on people investing in bitcoins, the uncertain situation and the dilapidating current condition of the coin is surely having a damaging effect on the company. Bitcoin fell from a high of $20,000 to about $5500 in a space of 9 months. It has not recovered ever since then, and now it currently maintained a range of $6000-$6800.
Coinfloor has been Around for Quite a While
Coinfloor which will be five years old this month started as a Peer-to-Peer marketplace for bitcoin, where buyers of bitcoin can make use of FIATs to get bitcoin from verified sellers on the platform. Coinfloor is known for being a first in many aspects of blockchain technology within the UK. The exchange is the first exchange to adopt the use of a comprehensive algorithmic rounding engine for the calculation of transactional fees.
Cause of the Layoff
The origin of the layoff can be traced to the recent report from the company, which claims that it has had a drastic drop in its number of transactions. Since the company is largely dependent on the fees generated from various transactions on its platform, this will greatly diminish its returns and overall profit. As a result, the company has been struggling with meeting up with its employee’s salary and wages.
The CEO of the firm, Obi Nwosu, has also confirmed the layoff the news, but he did not give the actual number of staffs which will be getting laid off.