Jeremy Allaire, co-founder of cryptocurrency startup Circle, said today that he decided to lay off some employees. Allaire said that "about 30" positions will be removed, accounting for 10% of the company.
“Today we have organized the Circle and reduced about 30 positions, which is about 10% of our total staff. We made these changes in response to the new market environment and, most importantly, the increasingly strict regulation in the United States. surroundings."
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The news was released after the price of bitcoin rose sharply, giving people some interesting insight into Circle's financial situation. This is the first large-scale layoff in the bitcoin industry in a few weeks. After bitcoin rose from $4,200 to $8,000 (competitive currencies also looked similar), companies have slowed down the pace of restructuring.
10% layoffs, Circle said it is related to changes in market environment
In the above tweet, Allaire said that the move is the result of the “new market situation” and that the increasingly strict regulatory environment in the United States is also one of the reasons. This may mean that just a few days ago, the Boston-based company actually received notice from the US law and legislature to stop its large transactions that provided local residents with a specific cryptocurrency.
Poloniex, the exchange of Circle, said:
"Poloniex announced today (May 16) that we are using geo-protection for some assets in the United States. We are deeply dismayed that the measures we have taken are the result of an increasingly limited environment for US crypto assets."
After the announcement, the company revealed that Ardor, Bytecoin, Decred, GameCredits, Neo's GAS, Lisk, NXT, Omni and Augur's REP will soon be released.
Allaire stressed that Circle is “still very strong and healthy” and his company will continue to do its utmost to promote innovation and technological advancement in the crypto economy.
From $250 million to $150 million, Circle lowers financing targets
However, the problem facing Circle seems to be more than that. In March of this year, Circle said it plans to raise $250 million from outside investors through stocks and bonds.
According to people familiar with the matter, Circle seems to have revised this financing target, which is 40% lower than the original plan.
Sources include a former employee of the company and a person reviewing their investment information, and the company is seeking to raise $150 million, well below the $250 million target set in March.
Crunchbase's data shows that the Boston-based company has so far raised $246 million from companies such as Pantera Capital, Digital Currency Group and Bitcoin.
Poloniex is also one of its important lines of business. But Circle's core business is still off-exchange. Over-the-counter trading of cryptocurrencies was once a hot business in the digital currency market, but this business model was adversely affected by falling profit margins and the presence of competitors.
However, layoffs are not necessarily related to problems with over-the-counter trading.
A former employee said: "No one has been laid off in the trading department."
Circle declined to comment on the financing plan, pointing out that its Circle Trade business is profitable, and Poloniex will have more customers in the second quarter than in the first quarter.
“Circle Trade is profitable. This year’s nominal trading volume has reached $2 billion and continues to sign with counterparties. Currently, there are more than 200 counterparties.”
“Poloniex is constantly adding innovative assets (more than 12 assets added last year), new features (such as margin trading for non-US customers) and customers; in the second quarter, Poloniex is expected to increase customers by 50% compared to the first quarter. ”