The global cryptocurrency market, which is currently going through a downturn, may lose community members who had no interest in venture capital at the time. Earlier this month, cryptocurrency exchange CoinSwitch laid off 44 employees from its customer support team as customer inquiries fell, highlighting the impact of the economic slowdown. The company is one of many currently facing issues dealing with volatile assets such as cryptocurrencies, especially in the absence of rules and regulations specifically governing the industry.
Founded in 2017, CoinSwitch is a Bengaluru-based cryptocurrency exchange claim Serving more than 18 million users. “Inquiries from our users are down to ten percent of what they were about a year ago. People who have been contacting us usually have questions about their KYC verification,” a company official told Gadgets 360.
“We are constantly evaluating our business to remain competitive, prioritizing innovation, value and service to our customers. To this end, we have resized our customer support team to accommodate the current volume of customer inquiries on our platform. This impacts our roles of 44 members of the customer support team who voluntarily resigned following detailed discussions with managers earlier this month,” a company spokesman said on Tuesday.
“Over the past year, many support team members have been absorbed into other functions based on whether their skills are suitable for other roles. We are providing all support to affected employees. As numbers grow and we open new roles, we Will be delighted to welcome back those affected.”
The continuous interest rate hikes in the United States and the continuous targeting of cryptocurrency players such as Binance and Coinbase by the US SEC are also factors that have slowed down the momentum of the cryptocurrency market in recent months. Currently, the total market capitalization of the cryptocurrency market is $1.05 trillion (approximately Rs. 8,680,402 crore), on the verge of reaching the psychologically significant trillion-dollar mark.
Earlier this month, India’s CoinDCX cryptocurrency exchange announced a 12 percent layoff, blaming the country’s tax regime for keeping investors away.
In its official statement, the cryptocurrency exchange stated that India’s TDS (tax deduction at source) relief for every cryptocurrency transaction has slowed down its business, especially during the ongoing bear market. In the latest round of layoffs, CoinDCX lost a total of 71 people.
Internationally, KuCoin, Binance, Genesis, and Huobi also laid off employees due to market pressure from January to August this year.
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