Crypto Infrastructure Provider Qredo Slashes Staff, Cuts Annual Expenses by 35% – Bear Market Continues?

Crypto infrastructure provider Qredo has unveiled plans to streamline its operations by reducing staff and expenses. This strategic move aims to ensure the company’s resilience in the face of ongoing market uncertainties.

Sources familiar with the matter have disclosed that Qredo has initiated a significant reduction in its workforce, with approximately 50 employees being let go.

This includes several high-ranking executives, such as Chief Product Officer Gabriele Farei and Chief Information Security Officer Asen Taskov.

The decision to downsize is anticipated to result in substantial cost savings, with estimates suggesting a reduction of around 50% in annual expenses.

As a result of these layoffs, Qredo’s current headcount now hovers around 130 employees, a noticeable adjustment to its organizational structure.

While a Qredo spokesperson has confirmed the layoffs, the company refrains from disclosing specific details surrounding the staff reductions.

Explaining the rationale behind the workforce reduction, the Qredo spokesperson stated:

“Due to the prolonged crypto winter, Qredo will be rightsizing to focus on its core protocol and its web3 custody business.”

Innovative Asset Custody Protocol

Qredo’s core offering is an innovative MPC-based (multi-party computation) asset custody protocol that addresses key challenges associated with private key storage and access control.

The protocol operates by recording ownership of Layer 1 assets on Qredo’s Layer 2 blockchain, known as Qredochain.

All signatures within this ecosystem are secured through a distributed multi-party computation (dMPC) network, a testament to the company’s dedication to security and user protection.

Furthermore, Qredo sustains its operations by collecting transaction fees, denominated in its QRDO token.

Qredo’s dMPC network is positioned as a solution for decentralized custody of digital assets.

It claims to enhance security by fragmenting and distributing customers’ private keys across secure data centers, a practice intended to mitigate risks associated with centralized storage.

Valuation and Funding

Founded in 2018, Qredo achieved a valuation of $460 million in February 2022 following an $80 million Series A funding round.

The company’s funding history reflects a total venture capital investment of approximately $94 million.

Qredo’s strategic decision to reduce its workforce mirrors a broader trend within the crypto industry.

Several crypto firms have opted for similar measures in response to the prolonged bearish market conditions and recent high-profile collapses in the sector.

Resilience Amid Market Challenges

Prominent industry players like Coinbase have also faced the need to restructure amid market challenges.

Coinbase initiated its first round of layoffs in June of the previous year, citing rapid growth and the necessity to adapt to the crypto winter.

Subsequent layoffs followed in November and January, culminating in a 20% reduction of its workforce.

The workforce adjustments by Qredo and other industry giants signify the adaptability and resilience of the crypto ecosystem as it navigates the complexities of a constantly evolving market.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.