Argentina-based crypto trading app Lemon Cash has just announced it has laid off around 38% of its staff, or about 100 employees, amid the difficult situation in the industry, CoinDesk has reported.
According to the publication, the company's CEO, Marcelo Cavazzoli, has said the optimization has affected the offices in Argentina and Brazil. According to him, an additional factor for the decision to make the mass layoff has been the lack of a clear recovery horizon in the venture capital market.
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He has said:
"There has been a huge wave of investment in Latin America, not only in crypto, but in technology in general, with giant rounds in fintech. I think this has made the tech industry in the region overly reliant on raising more funds."
The app raised $16.3 million in July last year and Cavazzoli announced the extension of the Series A round and received an additional $27.8 million.
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He has highlighted:
"This gives us the foundation to get us through the winter which we expect to reach investment grade. We are not dependent on additional investments in the next few years."