Crypto exchange Blockchain.com has unveiled plans to bolster its workforce by 25% in the first quarter of 2024. This expansion thrust includes venturing into untapped territories such as Nigeria and Turkey. Adding further firepower to its ambitions, Blockchain.com has enlisted the expertise of Curtis Ting, the former head of global operations at Kraken, to spearhead the establishment of a new hub in Paris.
However, this move is not just about geographical reach; it’s a proactive measure to navigate the intricate web of regulatory frameworks, with the company intending to create local entities across Europe.
Blockchain.com’s Resilience Amid Downsizing
This development comes on the heels of a tumultuous period for the exchange. In January, reports surfaced indicating that Blockchain.com had downsized its workforce by 28%, a decision attributed to the crypto industry facing formidable challenges over the past year. The company had previously grappled with a $270 million hit on loans extended to the failed hedge fund Three Arrows Capital, resulting in the necessity to trim its operational costs.
Blockchain.com representative acknowledged the challenging landscape, stating:
The crypto ecosystem is facing significant headwinds as it course corrects from the challenges of the last year.
Despite the earlier setbacks, Blockchain.com is now adopting a proactive stance to reposition itself in the ever-evolving crypto landscape. The CEO, Peter Smith, highlighted the company’s intent to enter the Nigeria and Turkey markets in the coming year. Smith expressed confidence in the strategic timing of their expansion, likening the industry’s current phase to an “early spring” after the crypto winter of 2022.
In an interview, Smith underscored the company’s impressive financial trajectory, with revenue experiencing accelerated month-over-month growth. The CEO refrained from disclosing specific figures but acknowledged the market dynamics that played to Blockchain.com’s advantage, stating:
There’s probably 60-70% less competition right now than there was at the end of 2021 — brokerages, exchanges, any line you look at.
To fortify its position and fund its ambitious expansion plans, Blockchain.com recently secured $110 million in a Series E strategic financing round led by Kingsway Capital, a UK-based investment firm. This funding round valued the company at less than half of its $14 billion valuation in the spring of 2022. However, with the latest infusion of capital and strategic moves, Blockchain.com is poised to navigate the crypto landscape, eyeing opportunities amid the changing tides of the industry.
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