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Bear Market Forces ShapeShift to Lay Off Employees

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The latest bear cycle in the market has claimed more victims after cryptocurrency exchange ShapeShift announced that it had laid off a third of its team.

ShapeShift CEO Erik Voorhees publicized the development through the exchange’s Twitter account.

The firm’s blog post that accompanied the Twitter announcement — called “Overcoming ShapeShift’s Crypto Winter and the Path Ahead” —indicated that it had laid off 37 of its employees, diminishing the size of its team by a third.

Voorhees explained that the staff cuts were caused by the “latest bear market cycle,” noting that the company’s “greatest and worst financial decision [was] to embrace substantial exposure to crypto assets.”

The CEO also shared that last year, the company “got hit from four sides.” He mentioned legal issues, “people and structural issues,” issues with customers and financial matters as the primary factors, claiming that the “confluence of these issues combined with our own lack of product focus that resulted in today’s layoff.”

Voorhees sent out an apology to those who were impacted by the major development, and ends the post on an optimistic note, saying:

“Among its many virtues, crypto assets enable people (and machines) to store value easily themselves and to transfer value directly to someone else, anywhere on Earth. This power is awesome and unprecedented.”

In September, the Wall Street Journal (WSJ) published the results of an inquiry claiming that $88.6 million in fraudulently obtained resources had been channeled through 46 different crypto exchanges, with $9 million moved using ShapeShift.

Voorhees later denied the indirect accusations, saying that the exchange’s team had collaborated with WSJ journalists for five months, but “under false pretenses,” as data provided by the exchange was allegedly distorted or omitted altogether.

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