Key facts
- FalconX, a digital asset prime broker, has reduced its global workforce by about 10%.
- The layoffs are attributed to expectations of a prolonged cryptocurrency market downturn.
- FalconX is reportedly withdrawing its license application in Singapore.
- The company plans to shift its Singapore focus to crypto derivatives trading.
- Other crypto companies like Coinbase and Crypto.com have also scaled back operations.
FalconX, a digital asset prime brokerage, has reportedly laid off approximately 10% of its global workforce in response to a prolonged downturn in the cryptocurrency market. The company, which acquired crypto ETF issuer 21shares last November, is also said to be reshaping its strategy in Singapore, focusing on crypto derivatives trading and withdrawing its license application with the Monetary Authority of Singapore.
Before the layoffs, FalconX employed around 350 people across its international offices. This move places FalconX among a growing number of crypto firms, including exchanges like Coinbase and Crypto.com, that are cutting costs and scaling back operations amid market headwinds.
The broader crypto market has faced pressure as Bitcoin and other digital assets have retreated from previous highs, impacting trading volumes and retail participation. Some analysts suggest the market may not have reached its bottom, indicating continued challenges for the industry. In response to these conditions, many exchanges are diversifying their offerings beyond spot trading, with sectors like tokenized assets and derivatives showing significant growth.