The global crypto market, which is currently experiencing a slump, could lose community members who are currently not keen on risky investments. That impact of the slowdown was highlighted by crypto exchange CoinSwitch after it laid off 44 employees from its customer support team earlier this month due to a drop in customer inquiries. The company now faces the brunt of dealing with volatile assets such as cryptocurrencies, among many others, particularly due to the lack of rules and regulations to oversee the sector.
Founded in 2017, CoinSwitch is a Bengaluru-based crypto exchange that is said to serve over 18 million users. “The requests from our users have dropped to just ten percent compared to about a year ago. People who contact us usually tend to have questions about their KYC verifications,” a company representative told Gadgets 360.
“In order to remain competitive, we continuously evaluate our company, emphasizing innovation, value and service to our customers. To this end, we have sized our customer support team according to the current volume of customer inquiries on our platform. This impacted the roles of 44 members of our customer support team, who voluntarily stepped down from their roles after a lengthy discussion with their managers earlier this month,” a company spokesman said on Tuesday.
“Over the past year, many members of the support team have been promoted to other roles based on whether their skills were appropriate for the other roles. We are extending all of our support to the affected employees. As volumes grow and we open new roles, we look forward to welcoming those affected back to our home.”
Back-to-back rate hikes in the US, as well as the SEC’s ongoing targeting of crypto players like Binance and Coinbase in the US, have also caused cryptocurrency market momentum to slow down in recent months. Currently, the total capitalization of the crypto market stands at US$1.05 trillion (roughly Rs.86,80,402 crore), just shy of the psychologically significant trillion dollars mark.
Earlier this month, Indian crypto exchange CoinDCX announced it was laying off 12 percent of its workforce, blaming the country’s tax system for deterring investors.
The crypto exchange said in its official statement that India’s TDS (Tax Deducted at Source) deductions on every crypto transaction have slowed its business, especially during the ongoing bear market. A total of 71 people have lost their jobs at CoinDCX during the recent round of layoffs.
Internationally, KuCoin, Binance, Genesis, and Huobi also laid off employees between January and August this year to give in to market pressures.