Unocoin Goes For Mass Layoffs To Manage Funding Crunch Due To Crypto Ban

Total
0
Shares

The layoffs

Before they landed into trouble, the company employed a workforce of over 100 people. As per a recent report from a local financial publishing  ET, the current set of events have pushed the firm to lay off more than half of its people, the current number of employees remaining down to a low of 14 employees.

For one the layoff could be attributed to the uncertainty in India around the use of cryptocurrency. When RBI banned local banks from dealing with any person/company involved with crypto transactions, several local cryptocurrency business owners protested against the ruling. However, the hearing for the same is still pending at the Supreme Court of the country, after being deferred to July.

For companies such as Unocoin, this implies that no follow on investment as ROI for investors becomes a sketchy possibility in the segment. Initially, Unocoin minced  $1.5 million from Blume Ventures and Bitcoin Capital, but the lack of follow on investment, have made sustaining quite difficult.

Subsequently, the layoff was a suitable option. In India, most business dealing with cryptocurrency had given up on the idea after the RBI ban and the uncertainty around hearing assessing the non-feasibility of the venture. Indian based Crypto Exchange Coindelta has closed its shop citing Inimical Regulatory Conditions.

As for Unocoin, the firm plans to sustain its business until July to live the possibility of a favourable outcome.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like