Buenbit, an Argentinian crypto exchange that also operates in Mexico and Peru, has announced layoffs due to the sagging market.
In a series of Tweets, founder Federico Ogue revealed the news.
Querida comunidad,
Hoy les vengo a contar una noticia que me duele mucho. Dado un nuevo contexto global, estamos redefiniendo nuestra estrategia para volvernos más robustos y eficientes, y quiero contártelo en este hilo.— Federico Ogue (@fedeogue) May 23, 2022
VC Matias Nisenson joined in the discussion to outline how collapsing markets have impacted the ability of early-stage firms like Buenbit to raise needed growth capital.
Las valuaciones de empresas públicas de tech se desplomaron, algunas perdieron el 75% de su valor en lo que va del año. Esto se debe a una serie de factores macro que con fines prácticos voy a evitar desarrollar.
Miren el caso de Netflix, Coinbase y MercadoLibre: pic.twitter.com/9AWYA09CcT
— Matias Nisenson (@MatiasNisenson) May 23, 2022
Nisenson said that investors are pumping the breaks on risk and looking to invest in firms that may be growing less fast but are profitable.
Buenbit is just the latest example of firms announcing layoffs due to the faltering economy. Expect more to follow as inflation continues to rise alongside interest rates and the potential for a recession grows.
