Buenbit, an Argentine crypto firm, is going through a rough patch and laid off 40 percent of its employees. With less than a week until May ends, the cryptocurrency market continues to have a bearish streak where Bitcoin, its main protagonist, reaches a value of over $30,000, according to CoinMarketCap. This bearish streak in the industry has somewhat impeded the growth of newer exchanges, such as Buenbit.
The entire crypto industry is going through a tense time, but its recovery is likely imminent. The head of the crypto company Buenbit gives details about the dismissal of his employees, hinting that it is a planned strategy.
Crypto exchange makes a drastic decision
Recently the Argentine crypto exchange, Buenbit, announced that it laid off a good part of its employee payroll. It is good to know that the crypto company was founded in 2017 in Buenos Aires and currently operates in three territories: Argentina, Peru, and Mexico.
After the mass dismissal, the chief of operations, Oque Federico, said that the Exchange was undergoing a test. In turn, Oque confesses that it is a planned strategy to maintain the operations of the Exchange in the dedicated countries.
While Oque’s views are well-founded, some market critics believe a deficiency in the crypto industry causes this. Simultaneously, it could also be motivated by the millionaire losses within the company that, like other exchanges, operated with TerraUSD. This algorithmic stablecoin lost its parity with the US dollar.
Buenbit pauses its goal of expanding its operations
Buenbit has not only decided to liquidate more than 40 percent of his staff, but the manager also announced that expanding his operations in previous months would be stopped. For the third quarter of 2021, the crypto company had created a financial plan with this purpose in mind. It even had a successful round as the Exchange raised about $11,000,000 in funding.
Faced with such a statement, the director of the crypto company said that this decision would prevent its structure from having a senseless exposure, which would cause the loss of funds. This will also prevent the Exchange from doing another financial round because the accumulated funds are insufficient for expansion. The manager at Buenbit believes it is better to propose a new strategy to reduce the loss range.
The decisions that the Latin Exchange has made are similar to those of Coinbase, an American crypto platform that announced that there would be changes in hiring new employees. In turn, Coinbase said it would seek to narrow the range of new hires while the virtual market continues to have a bearish streak. Both measures are extreme, but it is understandable knowing that the crypto market has been going through a downward trend since the beginning of 2022.