UK-based Coinfloor, a cryptocurrency exchange established in back in 2013 during the digital assets infancy and launched the first exchange-backed Peer-to-Peer marketplace for bitcoin, has begun drastically reducing their workforce due to a declining transaction rate. This round of layoffs is also attributed to the crypto market crash of 2018.
Britain’s oldest Bitcoin exchange began as a platform for Peer-to-Peer transactions on a bitcoin marketplace for bitcoin,that allowed crypto investors to utilize their fiat currency to buy the flagship digital asset from verified sellers. A pioneer in blockchain technology for the United Kingdom, saw the firm to be the first to use a comprehensive algorithmic rounding engine in order to compute transaction fees.
With the exchange’s business model relying on transactions of investments into bitcoin, the price drop from the coins high of $20,000 back in December has cut deeply into the company’s profits. With the price currently hovering in the $6,000 range, Coinfloor is forced into issuing pink slips.
Coinfloor’s reliance on the fees accumulated from transactions on the exchanges platform, the drop in transactions reported by the London headquarters, is putting the company at risk over not being able to meet its overhead. Employee wages are generally the first to be cut in these situations.
As of now, the number of positions to be vacated is undisclosed. However, Coinfloor’s CEO, Obi Nwosu, has confirmed the layoffs.