Cryptocurrency media platform CoinDesk has cut 45% of its editorial staff as its parent company Digital Currency Group (DCG) plans to sell the project. It is reported by The Block.
“This was a necessary step to ensure the financial health of the business and put us on the path to closing the deal to sell CoinDesk Inc,” added CEO Kevin Worth.
The platform was founded in 2013. According to insiders, layoffs affected about 20 people.
Management will hold a meeting soon to discuss the situation.
The WSJ previously reported on the impending sale of CoinDesk at a $125 million valuation. A group of investors led by Tally Capital’s Matthew Rojak and Capital 6’s Peter Vessenes is in the final stages of negotiations.
In January, journalists said that DCG is considering selling part or 100% of the media platform, which became part of the holding in 2016 after buying for $500,000-600,000.
The potential deal could ease the plight of Digital Currency Group. On May 22, the holding delayed a payment of $630 million as part of compensation to users of Gemini Earn.
Recall that over the past year, employment in the cryptocurrency sector has decreased by 10% – from 210,000 to 190,000 employees.
Robinhood, Dapper Labs, Polygon, Magic Eden, Protocol Labs, Bittrex, Luno, Blockchain.com, Huobi, Bybit, STEPN, TrueLayer, and others have announced layoffs.
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