By: Eva Baxter
The blockchain analytics firm Chainalysis and blockchain platform Chia Network have both laid off a significant portion of their workforce due to challenging market conditions in the cryptocurrency sector. Chainalysis, this week, confirmed that it has reduced its staff by 15%, which equates to about 135 employees. Meanwhile, Chia Network confirmed to CoinDesk that it had to cut a third of its workforce.
Chainalysis cited the need to cut expenses in the face of a continued bear market contributing to reduced demand for commercial products. The firm reported a 64% drop in digital asset market capitalization from its peak almost two years ago. Notably, this is the second round of layoffs for the company this year. Back in February, Chainalysis had to let go approximately 40-50 employees as part of organizational restructuring.
On the other hand, the layoffs at Chia Network have also been blamed on a lost banking relationship. The disruption has led to the postponement of the firm's plans to list as a public company. This step clearly reflects how regulatory pressures and shrinking revenues are affecting companies across the crypto sphere.
These staff cuts show the impact of the challenging market conditions on leading crypto and blockchain companies. Unfortunately, this is not limited to these two companies alone. In September, the US subsidiary of Binance had to cut one-third of its staff due to increased regulatory pressures.
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