ShapeShift Cryptocurrency Exchange Lays Off 37 Employees, CEO Calls Expansion Mistake

The crypto winter has devastated companies in the industry, including ShapeShift. CEO Erik Vorhees confirmed on Jan. 10 the layoff of 37 employees in the well-funded startup, a third of the firm’s workforce. The prolonged bear market of 2018 caused massive losses in revenue for most startups operating in the crypto space. While several have shut down entirely, a majority are laying off employees and restructuring their organization as a period of brisk growth in 2017’s crypto run-up proved unsustainable for the long-term. Related: Bitcoin Companies Purge: Bitmain and Huobi Lay Off Workers In a blog post, Vorhees acknowledged ShapeShift‘s failure to sustain rapid growth in the past year—including several related business verticals like CoinCap, KeepKey, and custodial solutions for ether—stating the “lack of focus” was their most “thematic” mistake. He adds the growth required a regular financial and legal review that consumed essential resources, diverting attention from essential processes…

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