Argentinian Crypto Exchange Lemon Cash Hits 100 Staff With Bear Market

Lemon Cash, a cryptocurrency exchange operating in Argentina and Brazil, put 38% of its workforce out of work on Friday.

As cited by Lemon Cash, 100 employees were laid off as a result of the unfavorable industry environment and lack of clear recovery prospects for the venture capital sector.

The Latin American crypto industry continues to suffer from unfavorable market conditions, forcing crypto companies such as Lemon Cash to give pink slips to a significant number of their employees.

Marcelo Cavazzoli, CEO of Lemon Cash, announced the layoffs in a Medium article, “Open Letter to the Community.”

In the letter, Cavazzoli expressed his sorrow and cited the “difficult international situation” as the reason for his unemployment.

Following the FTX collapse, the end of the crypto exchange will occur

Lemon’s decision to lay off this number of employees follows the recent collapse of crypto exchange FTX, which rocked the market.

Major cryptocurrencies, especially Bitcoin, bore the brunt of the FTX crash, raising concerns about the integrity of the cryptocurrency as a whole.

According to Cavazzoli, the startup investment sector is going through a “recession period” and Lemon recognizes this trend will continue for some time.

Image: Criptotendencias

“There is an international situation that we are part of and have to adapt to,” the CEO noted.

It is important to note that Latin America is not the only region witnessing the decline of the cryptocurrency market. This predicament is a global problem and has been going on for years, even before the FTX disaster.

Lemon Cash’s layoffs appear to be by far the largest in the Latin America region. This is determined by comparing the number of employees it has decided to lay off with the number of positions other crypto companies in the region have decided to fill.

Pending Lemon Cash expansion plans

As a result, Lemon has been forced to shelve expansion plans in Colombia, Ecuador, Chile, Uruguay and Peru by the end of 2022.

Lemon Cash, on the other hand, is not the first cryptocurrency exchange to cut its workforce.

Another Argentinian cryptocurrency exchange, Buenbit, has cut almost half of its workforce, cutting 80 employees.

Coinbase reportedly laid off about 1,000 employees in May of this year. Last month, his 40% of staff at Indian exchange WazirX was given a door.

Crypto layoffs make up just 4% of all technology layoffs, according to a Nov. 14 analysis by CoinGecko. Tech giants such as Meta and Twitter have eliminated additional positions.

Crypto total market cap at $797 billion on the weekend chart | Featured image from Imgflip, Chart: TradingView.com