Exchanges Roundup: Coinbase Volumes Hit 1-Year Low, UK Exchange to Fire Most Staff
Recent updates show that with the cryptocurrency markets performing far from how they did a year ago, some exchanges have failed to adapt to the current situation. For example, one U.K. firm is reportedly set to fire most of its employees. Yet other exchanges are still going strong, breaking into new territories and adding new trading instruments.
Also Read: The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC
Weak Quarterly Trading Volumes
Diar, an analysis service for the global digital currency industry, has issued a report highlighting the extremely weak performance of popular crypto exchanges during the third quarter of the year. For example, total USD trading volumes on Coinbase reached their lowest point in a year and total USDT trading volumes on Binance fell from $235 billion in the first quarter to just $106 billion.
As the report shows, one way the exchanges are looking to secure growth for the future is by moving toward tokenized securities.
“Having made bank on the trading bonanza in the past year, cryptocurrency exchanges are also acutely aware that, for the most part, the tokens they list don’t currently satisfy a utility purpose,” Diar explained. “Diving into deep pockets, exchanges are diversifying their portfolio by investing in various parts of the ecosystem to support the long-term growth of an industry stuck in development. But most notably, exchanges have amped up their investment interest for the possible issuing and trading of tokenized securities.”
Coinfloor to Fire Over Half its Employees
Coinfloor is in the process of firing most of its staff, according to a report by the Financial News, citing two people familiar with the matter. Founded in 2013 with backing from Transfer Wise founder Taavet Hinrikus, venture capital firm Passion Capital and Adam Knight, Coinfloor was estimated to employ about 40 people before the newly planned cuts.
Coinfloor CEO Obi Nwosu told the London-based newspaper that the company has “seen significant change in trade volume across the market.” He also stated that: “Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies.”
Israeli Exchange Looks Abroad
According to Israeli media reports, Tel Aviv-based exchange Bit2c is looking to offer its services into foreign markets. The exchange has reportedly acquired a Gibraltar-based firm, Eyos, that is said to be in advanced phases of receiving a distributed ledger technology (DLT) license from the local regulatory authorities that can be used to accept clients from across the EU.
“This is a significant breakthrough in making unique Israeli technology more accessible while providing a professional and experienced service to the whole of Europe, and all in the framework of a license that will enable a range of trading activities, payment options and cooperations with traditional financial institutions such as banks, credit companies and insurance companies,” Bit2c CEO Eli Bejerano said. “We continue to examine other markets, and in the future we will act to get additional licenses around the world.”
Bequant Launches EUR Stablecoin
Bequant, a London-based global exchange, has announced the launch of Stasis’ stablecoin EURS. The company explains that the launch of the token, meant to be backed 1-for-1 by the euro, will allow safe investing for its European institutional investors in a reliable asset.
“The cryptocurrency sector is constantly striving for ways to encourage transparency, reliability and trust from investors — both institutional and individuals. Doing so not only builds trust within the industry, but also establishes clear regulation and controls that make crypto-assets a desirable choice for any investor’s portfolio. Stablecoins hold huge advantages in making this goal possible, tying themselves to a more traditional asset,” said CEO George Zarya.
“STASIS EUR’s work in creating a more reliable asset will help build the credibility of cryptocurrency in the wider financial market through its improved processes aimed at providing a more secure asset for investment. Its listing on BeQuant presents a huge opportunity for investors to get involved with a currency that is already giving previously cautious investors access to the world of crypto.”
Should we expect more exchanges to cut staff as trading volumes drop? Share your thoughts in the comments section below.
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by Avi Mizrahi via Bitcoin News