Coinflex Announces Staff Reduction to Reduce Costs by 60 Percent
- Coinflex said the move is to have the correct number of employees in the case of a possible merger or sell-off.
On Friday, struggling crypto exchange, CoinFLEX announced its decision to fire most of its employees regardless of their departments and geo-locations. The exchange claimed the move was necessary to enhance its focus on its primary business without running on huge maintenance fees.
Additionally, the firm claims that staff reduction will result in a 60 percent reduction in maintenance costs.
CoinFLEX’s staff reduction announcement comes a week after its proposal to compensate depositors and find the right solution to its financial woes. The company has been in a financial crisis after one of its “large individual clients” owed it more than $84 million. CoinFLEX announced the job cuts via a lengthy post released through the company’s blog.
CoinFlex and the Market Outlook
The blog post also revealed that the remaining CoinFLEX staff mainly focused on products and technology. CoinFLEX co-founders, Mark Lamb and Sudhu Arumugaam added that the company would minimize costs without sacrificing efficiency.
In future, the company promised to scale once there is a rise in volumes. Coinflex added that the goal is to ensure that the company’s size fits another firm that may be considering a merger or a possible outright purchase. There will be an update to the blog post next week once votes from the depositors are complete.
The exchange stated that minor legal and accounting issues caused delays in providing updates from depositors’ votes in this blog post. Furthermore, CoinFLEX intends to start a new service that enables users to trade with their locked balances or unlocked balances separately.
However, the exchange still struggles to assign the correct prices to the market’s trading assets. Meanwhile, Hayden Otto (famous crypto influencer) plans to hold a live session with CoinFLEX CEO, Mark Lamb, on July 30 at 6 am UTC. Hence, many CoinFLEX users can use the opportunity to get first-hand updates about the crypto exchange’s near-term and long-term vision.
According to the announcement, the CoinFLEX team wants to develop new product offerings that will be useful but unique in the marketplace. The new product offering will supposedly enhance the value of the exchange and its native token (FLEX). Hence, it requests product ideas from the populace, which the team can discuss and explore.
However, it clarifies that the focus of the ideas should be a different way to list and launch a perp swap to enhance its DeFi style. CoinFLEX team will also be open to ideas on using custody decentralization and data margining to enhance transparency. The team said that ideas related to the suggestions above are contained in the FLEX white paper.
Hence, it won’t want to stray from it to avoid losing the trust of FLEX users. The team further notes that many steps will be involved before it narrows down the ideas to a complete non-custodial offering.