As a crypto investor with some experience in the industry, I’m keeping a close eye on developments at Paxos and other stablecoin issuers. The news of Paxos laying off 20% of its workforce is concerning, but not entirely unexpected given the current market conditions.
According to a report from Bloomberg published on Thursday, Paxos, the stablecoin issuer, has let go of approximately 20% of its workforce, resulting in the dismissal of around 65 employees based on an internal communication.
As per the report, Charles Cascarilla, CEO and co-founder of Paxos, mentioned that trimming down the workforce would enable the company to seize prospects in the tokenization and stablecoin markets in the future. Paxos plans to discontinue certain services to concentrate on tokenization and stablecoins.
Paxos Sacks 65 Employees
The stablecoin company granted affected employees three months of discounted health insurance and job placement assistance, along with thirteen weeks of enhanced severance pay and an extended period of two years to utilize vested stock options. Furthermore, those on a quarterly incentive scheme were given their second-quarter bonuses, while individuals with approved parental or medical leave received corresponding benefits.
Due to the job cuts, Paxos’ headcount now hovers between 200 and 300.
It’s intriguing that Cascarilla mentioned Paxos has over $500 million in assets, implying a strong financial standing for the company. Yet, the decision to reduce staff size remains a puzzle.
Today has been a challenging day for me as a crypto investor. I own up to the decision I made and feel remorse about the necessary steps we had to take. We personally informed each of the 65 affected team members about this development. By doing so, we can effectively capitalize on the immense potential in tokenization and stablecoins moving forward. With over $500 million in our reserves, we are financially robust and well-positioned for success.
Paxos Unveils Yield-Bearing Stablecoin
Last week, Paxos announced workforce reductions among its employees. This decision followed MoonPay’s recent layoffs of 10% of their staff due to excessive investments leading to lower-than-anticipated operating profits and a high-cost business model. The affected employees were let go with the intention of streamlining costs and enhancing the company’s foundation.
As a researcher examining MoonPay’s financial situation, I can report that the company boasts a robust financial standing, complete with a consistent positive cash flow and ample years of operational runway remaining. Regarding the impacted workforce, they will be provided with severance packages and retained as potential shareholders in the organization.
Recently, the United Arab Emirates branch of Paxos introduced a new stablecoin named Lift Dollar (USDL). This digital currency holds the distinction of providing daily interest payments to eligible wallet holders, derived from its reserve earnings.
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2024-06-14 01:28