Coinfloor, the UK’s First Bitcoin Exchange, Has Cut The Majority of Its Staff
Coinfloor, the United Kingdom’s oldest Bitcoin (BTC) exchange, recently announced plans to cut the majority of its staff following a setback. According to sources familiar with the matter, the company will be slashing the majority of its 40 person team.
Obi Nwosu, who stands as the company’s chief executive, confirmed the reductions but declined to provide a statement that specified the exact amount. Instead, Nwosu noted that it’s normal for companies to grow or cut employees as a response to the market environment, noting he has “seen [a] significant change in trade volume across the market.”
Although the market had experienced solid growth, the downsizing comes as a result of emerging competition. Since the launch of Coinfloor five years ago, more than 200 new cryptocurrency exchanges have opened globally, with more being launched every week, according to CoinMarketCap.
Coinfloor, which is backed by TransferWise founder Taavet Hinrikus and venture capital firm Passion Capital, has traded around $1 billion worth of Bitcoin in the last year, according to Nwosu. Although the company began as a service that allowed institutions to trade on an exchange, Coinfloor shifted toward marketing its services to financial professionals who want to invest in Bitcoin.
Various other cryptocurrency exchange firms have launched with the same strategy, including Archax, which specifically targets institutional investors. Last June, Archax hired David Lester, a former London Stock Exchange strategist, as their latest senior adviser.