- The corporation said that regulatory uncertainty was a major factor.
- Anchorage Digital is also exploring a first, decommissioning custodial assistance.
Due to the drastic previous year and collapse of multiple behemoths including FTX, Anchorage Digital is the latest cryptocurrency company to announce strategic layoffs.
The firm has had to lay off around 75 employees, or 20% of the total workforce. A corporate spokesperson informed that the layoffs are unconnected to the recent news banking events and are instead part of an internal restructuring that has taken many months to accomplish.
A spokesperson for the firm stated:
“Our business has seen low institutional demand for certain classes of digital assets, and as a result, Anchorage Digital will reduce focus on them. This includes general demand for NFTs, which means that after a recent NFT feature release we will reduce investment in future institutional functionality.”
Moreover, the corporation said that regulatory uncertainty was a major factor in the shift in strategy. Anchorage Digital provides a variety of services to institutional customers, one of which is qualified custody for crypto assets. Non-fungible tokens (NFTs) are one example of a kind of asset that has not proved to be in high demand among the company’s institutional clientele.
Moreover, NFT trading volumes among retail investors have remained reasonably high, with over $2 billion traded in February 2023, according to statistics from DappRadar, despite slow adoption by institutions. Yet even the most established companies, like Meta, are rethinking their strategies for the NFT market. On the other hand, Anchorage Digital is also exploring a first, decommissioning custodial assistance for other low-utilization cryptocurrencies, such as Litecoin.