Another Canadian crypto exchange in trouble? Coinsquare fires 40 employees

01 Feb, 2019
by Joeri Cant
Exchange
Another Canadian crypto exchange in trouble? Coinsquare fires 40 employees

The Canadian cryptocurrency exchange platform Coinsquare, AKA the 'Canadian Coinbase', has let go of about 40 employees in a variety of roles, including key executives.

Martin Hauck, the Head of talent for Coinsquare, initially posted the news of the layoffs on his LinkedIn page, however, employees only found out about the news early this morning.

Hauck said that the ever-evolving digital currency/cryptocurrency space has been volatile and unpredictable.

'Many similar companies in our industry have had to make some tough choices in recent months and Coinsquare has had to as well. The company has made the decision to part ways with a number of talented members of the Coinsquare team. All of which have made their own impact and contribution to our success so far, for which we are extremely grateful for.'

According to Betakit.com, this is the second wave of layoffs to hit the company. In July 2018, the Toronto-based cryptocurrency exchange fired approximately 20 employees. Departments across the company were affected, just as they are today.

This time around, key executives were on the chopping block as well. Both the COO and the CFO were terminated, after being hired less than a year ago.

Recently the crypto exchange expanded its services into 25 countries simultaneously across the European Union, and acquired BlockEQ, a cryptocurrency wallet running on Stellar for $12 million.

Read more: Coinsquare is launching in 25 countries across Europe

Coinsquare’s CEO Cole Diamond, said that tough decisions have to be made so that they can continue to build a 21st-century financial institution.

'We also have to be very responsible in terms of the way we manage our resources', Diamond added.

'We’re in the most volatile market that you or I have ever seen. As a result, we’ve scaled up in the last 21 months from three people to a high of 150 people. We’ve decided to make some cutbacks to make sure we protect our strong position in the market, and our overall dominant position as the strongest company in not just cryptocurrency, but blockchain in Canada.'

Diamond said that the decision was quite difficult because they had to let go of a number of talented people.

He concluded by pointing in the direction of another Canadian cryptocurrency exchange which went sudenly offline, just a few days ago.

'As you are probably aware, QuadrigaCX, our main competitor in Canada, is offline', he said. 'And we know that other exchanges in this country are in trouble.'

However, The CEO made it very clear that 'Coinsquare is in absolutely no trouble.'

Read more: Canadian crypto exchange QuadrigaCX goes offline, Reddit screams 'Exit Scam'

The prolonged bear market is clearly taking its toll on the Canadian cryptocurrency exchanges.

Do you think we will see more layoffs at Coinsquare? Let us know in the poll below.

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