Joe Kelly, CEO of Bitcoin financial services outfit Unchained Capital, said the company will reduce its staff by “roughly 15%” as part of efforts to manage the business during the current crypto bear market.
Unchained Capital’s job cuts are due to constraints in funding for bitcoin-backed loans, Kelly said in a note shared on Friday. These constraints, he noted, are part of a general drawdown occasioned by the year-long crypto bear market. Despite these issues, the Bitcoin lender's CEO said its loan book is still over-collateralized, with a collateral-to-principal ratio of 214%.
Kelly also said the company did not have any exposure to bankrupt crypto exchange FTX or its sister trading firm Alameda Research. Still, he said the Bitcoin lender is caught up in the current challenging crypto market and needs to plan for the long term. He added that some of the company’s hires during the last bull-market period are no longer sustainable.
(By Osato Avan-Nomayo)