Crypto Exchange

Argentine Crypto Exchange Lemon Cash Sacks 100 Staff As Bear Market Bites

Lemon Cash, a crypto exchange with operations in Argentina and Brazil, laid off 38% of its workforce on Friday.

One hundred employees were laid off due to the unfavorable operating environment and the lack of a clear turnaround prospect in the venture capital sector, as cited by Lemon Cash.

The Latin American crypto landscape continues to be plagued by adverse market conditions, forcing crypto firms like Lemon Cash to give the pink slip to a significant number of employees.

Lemon Cash CEO Marcelo Cavazzoli announced the layoff in a Medium article titled “Open Letter to the Community.”

In the letter, Cavazzoli expressed his sadness and cited the “challenging international context” as the reason for the job loss.

Crypto exchange shutdowns come after FTX collapse

The decision by Lemon to lay off this number of employees follows the recent collapse of crypto exchange FTX, which shook the markets.

Major cryptocurrencies, especially Bitcoin, bore the brunt of the FTX crash, propagating concerns about the crypto’s overall integrity.

According to Cavazzoli, the startup investment sector is experiencing a “recessionary era,” and Lemon is aware that this trend will continue for some time.

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Image: Criptotendencias

“There is an international context that we are part of and to which we must adapt,” the CEO pointed out.

It is important to note that Latin America is not the only region to see a decline in the crypto market; this predicament is a global issue that has continued throughout the year – even before the FTX disaster.

It turns out that Lemon Cash’s layoffs are by far the largest in the Latin American region. This is determined by comparing the number of employees it decided to let go to the number of positions other crypto companies in the region decided to fill.

Lemon Cash expansion plans on hold

As a result, Lemon is obliged to set up expansion plans for Colombia, Ecuador, Chile, Uruguay and Peru by the end of 2022.

Meanwhile, Lemon Cash is not the first cryptocurrency exchange to reduce its workforce.

Another Argentinian crypto exchange, Buenbit, cut almost half of its staff, bringing 80 employees.

Coinbase reportedly cut about a thousand employees in May of this year. Last month, 40% of the staff of the Indian Exchange WazirX were given the door.

According to a Nov. 14 analysis by CoinGecko, crypto layoffs make up only 4% of all tech layoffs. Tech titans like Meta and Twitter have eliminated additional positions.

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

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