Coinhouse Trims 15% Workforce Amid Crypto Sector Challenges

On October 13, 2023, French crypto exchange Coinhouse announced a 15% reduction in its workforce, following in the steps of another French unicorn, Ledger. This move primarily affects the web 3.0 department within the firm. Coinhouse CEO Nicolas Louvet, in an interview with BFM Crypto, clarified that the current downsizing does not relate to an alleged 40% staff cut reported earlier by Mindfintech. He attributed the decision to a waning interest in Web3 technologies compared to the previous year, and a broader bearish crypto market scenario. Despite the layoffs, Louvet mentioned ongoing recruitment for positions in marketing and data departments, hinting at a strategic realignment towards core crypto investment operations.

Established in 2015, Coinhouse has seen its staff number dwindle from 100 to 60 within a year, reflective of the broader challenges faced by the crypto sector. The company, which enables the trading of 40 different cryptocurrencies, secured €2.4 million in a Series A funding round in 2019, followed by a substantial €40 million round in 2022. Boasting over 500,000 client accounts and 3,000 corporate clients, Coinhouse was the inaugural entity to obtain the digital asset service provider (PSAN) registration from the French Financial Markets Authority (AMF) in 2020. Additionally, it acquired a license from Luxembourg's Commission de Surveillance du Secteur Financier (CSSF), expanding its operational footprint to Luxembourg.

The current workforce reduction indicates Coinhouse's shift in focus, from pioneering Web3 services to assisting companies and institutions in shaping their Web3 strategies amidst a fragile global economic backdrop. The move underscores a cautious approach in a bear market, while still nurturing core cryptocurrency investment services. In the broader narrative, it reflects a recalibration within crypto enterprises to navigate through market uncertainties.