Bitcoin lender, Unchained Capital, has downsized its workforce by about 15%, citing the bear market as the major cause. The company emphasized that it had no exposure to FTX, but the prolonged bear market is taking a big toll on the business.
Unchained Capital made this development public in a Twitter post. The company further gave information on its business and evolution and the action taken to ensure the business continues to thrive.
In the update, the company’s CEO, Joseph Kelly, noted that the constant downfall of various crypto lenders and exchanges was an instructive tool the company will utilize to avoid going down the same hole.
He stated that while these institutions used cryptocurrencies to replicate the worst practices of the traditional financial system, the Unchained business model is different. The company’s focus on Bitcoin, self-custody, and limiting counterparty risk has enabled lending clients to trust that their loan collateral remains segregated on-chain.
However, with the prolonged bear markets, funding for Bitcoin-backed loans has been restricted. Kelly said the company has come to accept the reality and will act accordingly.
According to Kelly’s statement,
“In order to ensure Unchained and our clients retain solid footing through the current market, no matter how it develops, we find ourselves having to make another hard decision today: we are reducing our overall workforce by roughly 15%.”
In addition to cutting its staff, the company is also restructuring its management. As such, Parker Lewis, the Head of Business Development, will now join the board as a director, and Will Cole, the Chief Product Officer, will be a senior advisor to the company.
Unchained will assist departing employees by providing severance packages and other incentives. The company also stated it had exciting plans for next year, including major enhancements to the core product experience, additional financial service offerings, and new, value-adding partnerships.
