Cryptocurrencies are accompanied by high volatility and fluctuations in their price can bring down many structures. One of the victims left by the recent crypto crash was the local exchange goodbit, that in the last hours laid off 50% of its staff and began a restructuring plan.
After the shock that the market suffered last week, the company reduced its staff in Argentina and, as detailed in a statement, is reorganizing its structure.
“After a 2021 of exponential growth for the technology industry, we find ourselves going through a stage of global adjustment and reviewwhere from the largest company to the smallest are forced to redefine their strategy”, they point out from Buenbit.
The trigger was the Bitcoin price plummeting to its lowest point since 2020, below $30,000.
“Today I come to tell you a news that hurts me a lot. Given a new global context, we are redefining our strategy to become more robust and efficient, and I want to tell you about it in this thread”, he commented. Federico Oguefounder of Buenbit, in a Twitter thread.
“Given this new context, we decided to reduce staff and pause our expansion plan to focus exclusively on the operation of the countries where we are present today and maintain a self-sustaining and efficient structure,” he added.
The hurricane was triggered by the crash of Luna, the cryptocurrency meant to catalyze the unstable TerraUSD, which was designed to keep a constant parity in one dollarbut has plunged to less than 40 cents in recent weeks.
Unexpectedly, Luna fell from nearly $120 in early April to less than a cent on Thursday of last week, an event so unfortunate that its developer was forced to stop its chain operations.
This debacle caused the accelerated decline of other virtual currencies such as Bitcoin and Ether. However, Ogue assured that “this has nothing to do with what happened with UST/Terra” and that “it is a decision that we have been working on for months”.
The collapse of the crypto market
Buenbit, one of the many exchanges hit by the cryptocrash.
People are betting on these stablecoins because they consider them to be a more reliable medium of exchange, since they are generally pegged to an asset like the US dollar and have little fluctuation in value.
In fact, various rumors in recent days indicated that some exchanges were “leveraged” on the protocol. Anchorwhich offered 20% per year in UST, which lost its parity with the greenback and today is worth hundredths of a dollar.
Buenbit offered this investment instrument to usersBut it was not the only one.
In addition, they state that “we analyzed all possible scenarios and decided pause our expansion plan to concentrate exclusively on the operation of the countries where we are present today; focusing on creating a safe, robust and accessible product for people’s finances”.
“With an eye on what is to come, we are going to move forward with an optimized and sustainable structure, which allows us to redefine our plans to continue generating value for the thousands of users who trust us,” the statement highlights, confirming that it will reduce staff to deal with what is coming.