Staff at Indian Crypto Exchange are laid off by 30%
Darshan Bathija, a co-founder, stated on Tuesday that they had made the difficult decision to cut Vauld’s headcount by around 30%.
Following in the footsteps of other cryptocurrency-related businesses that have lately reduced employees due to a protracted market downturn, crypto trading platform Vauld has opted to reduce its staff by 30%, according to its cofounder Darshan Bathija on Tuesday.
“We know that resilient companies are built during bear markets. Sanju and I started Vauld during the last crypto winter and we’re here because we carefully managed expenses then. We believe that these measures are necessary so that we’re very strong in the long term,” Bathija said in a series of tweets.
He explained the reasons for the layoffs by stating that the market conditions have become more unpredictable, even for cryptocurrency enterprises, and that a few market participants’ activities have raised a great deal of customer concern. He stated that despite seeing the early warning signs of the economic recession, the company kept on hiring in 2022.
We've taken the painful decision to reduce Vauld's headcount by about 30%
More information: https://t.co/gD7epuXuvo
— Darshan Bathija (@darshanbathija) June 21, 2022
Additionally, as part of the cost-saving strategy, it is cutting back on marketing expenditures, delaying hiring, slashing CEO salaries by 50%, and postponing most vendor contracts.
“We are working with each person affected and: Paying them two months of their salaries as a severance payment and ensure that they retain their signing and/or joining bonus. Provide 12 months of medical insurance for their family. Help them find a great place to work,” Bathija said.
Vauld, a company founded in 2018 by Darshan Bathija and Sanju Kurian, offers a variety of products, including fixed deposits and asset-backed lending and borrowing, that are geared toward helping cryptocurrency investors build wealth.
Peter Thiel, the creator of PayPal, led Valar Ventures in a $25 million Series A fundraising round for Vauld in July 2021. Along with other investors, the investment round included Pantera Capital, Coinbase Ventures, CMT Digital, Gumi Cryptos, Robert Leshner, and Cadenza Capital. Despite having its headquarters in Singapore, Vauld has a sizable Indian workforce.
The recent increase in interest rates has put pressure on the cryptocurrency markets, which have fallen along with other so-called risk assets. Numerous decentralised finance applications and their communities are scrambling to fortify themselves against a wave of liquidations as a result of the record-breaking collapse in cryptocurrency prices.