Another top crypto exchange has decided to cut headcount a week after its CEO took an exit.
Bitmex has reduced its number of employees as part of a strategy to move away from the company’s “beyond derivatives” model.
“We are pivoting from our Beyond Derivatives strategy and will return much of our focus aiming at providing the crypto derivatives trading experience people will turn to,” according to Bitmex.
“We are going to refocus on liquidity, latencies and a vibrant derivatives community, including BMEX Token trading.”
The company’s “beyond derivatives” included a push into spot trading, brokerage and custody services.
Bitmex had employed around 180 people as of September.
Initially, it was reported that Bitmex had let go of 30% of the workforce, but they later clarified that the number was lower. However, the company has released not released an exact number.
The company had previously laid off around 75 jobs after cancelling its plan to take over the German bank Bankhaus von der Heydt.
According to the company statement, they are “going to refocus on liquidity, latencies and a vibrant derivatives community including BMEX Token trading.”
They further added that the company’s top priority is to make “sure all employees who will be impacted have the support they require.”
Bitmex became the first crypto exchange for offering crypto derivatives after its establishment in 2014.
The cut-off has come a week after CEO Alexander Höptner quit less than two years with Bitmex, following which the company appointed Chief Financial Officer Stephan Lutz as interim CEO.
Höptner was drafted to bail out BitMEX when the previous CEO Arthur Hayes was under investigation by the United States market regulators.
Höptner took over as CEO back in January 2021 at a time when the exchange needed enough stability and a break from the legal onslaught that was launched by US regulators over its derivatives products. Drawing on his experiences with Börse Stuttgart, Deutsche Börse AG, and led Euwax AG, Höptner committed to changing the primary focus of the exchange from derivatives to other products.
Besides Bitmex, other crypto exchanges such as Crypto.com and BlockFi have also laid off their employees.
Crypto exchange Crypto.com and lending platform BlockFi announced plans to cut over 400 jobs globally in June as they came under pressure from difficult market conditions.
Crypto.com said that it would reduce its workforce by 5%, which is about 260 employees. While BlockFi announced that it would lay off 20% of its workforce, around 170 people.
Image source: Shutterstock