Citing a shift in business focus, homegrown crypto-trading platform, CoinDCX has reduced its staff by approximately 12 per cent. The crypto startup founded in 2018 will now be focused on attaining profitability and establishing a viable business model.
Attributing the decision to the unfavourable economic conditions, founders Sumit Gupta and Neeraj Khandelwal announced the news in a blog entry. They mentioned that the platform is contending with uncertain regulations and has witnessed a drastic decline in trading activity by 85 to 90 per cent over the last year.
Most of this slowdown is attributed to elevated taxes and TDS charges. This challenge is particularly pronounced in the crypto sector due to the extended period of market decline and the influence of TDS on local exchanges. These combined factors have had a noteworthy effect on trading volumes and, consequently, on revenues.
The decision is said to be a proactive measure to streamline its expenses and the implementation of automation to enhance effectiveness and output. Moreover, the startup has also rearranged specific projects and products to align with their overarching business strategy.
The post mentions that the startup will be aiding the affected employees by offering essential support and resources. The employees will be given severance compensation equivalent to the complete notice duration, along with an extra month’s salary. Additionally, the company will also settle the variable pay and due incentives, and convert unused leave days into monetary benefits. The severance package also includes continued healthcare coverage and well-being advantages, with a provision of counselling assistance.