Middle East Crypto Exchange Shuts Down Mass Due To Falling Markets

The decline in the crypto markets that took place several months ago had many consequences. As the crypto industry is slowly getting back on its feet, some companies are dealing with the inconvenience caused by the downward trend in cryptos. As a result, there have been massive layoffs at a crypto exchange in the Middle East.

Mass layoffs at Rain Financial

The price of many cryptos has fallen in recent months. Although the trend is reversing, there are tensions in several crypto-asset-based companies. While some investors remain optimistic and patiently wait for the cryptocurrency to recover, others are forced to make drastic decisions.

As we know, many states are wary of cryptocurrencies and are hesitant to adopt them officially. However, many exchanges have been able to establish themselves in the Middle East, including Rain Financial. Rain Financial Inc is known as one of the largest exchanges in the Middle East and has been subject to market fluctuations.

To do this, he terminated the contracts of certain employees. According to the statements of the persons involved, the platform has laid off dozens of employees because of the crypto crisis that took place several months earlier.

For the CEO and co-founder of the exchange, this decision was difficult to make, but it had to be done for the company to survive these dark times. Note that Rain Financial is backed by Coinbase Ventures and venture capital firm Kleiner Perkins. It is a company that employs about 500 people. Therefore, massive layoffs in this crypto exchange may be the best solution to keep the company afloat.

Middle East: crypto hub?

While the Middle East has been reluctant to adopt cryptocurrencies, we are seeing more and more crypto exchanges there. Between Binance in Dubai and CoinMENA in Bahrain, the Middle East is becoming a hub for crypto exchanges. In Bahrain, however, the trend appears to be strengthening.

We are seeing more and more crypto activity in this part of the world and even the massive layoffs in a crypto exchange doesn’t change that much. Major crypto exchanges find their place there and develop according to the development of cryptographic assets.

In 2019, Rain Financial received approval from the Central Bank of Bahrain and has been doing business there ever since. As a result, it became the first licensed crypto platform in the country. The expansion of crypto exchanges is an asset for the development of these assets. The more ways there are to acquire them, the more people will be tempted to go for it.

However, the market cap of cryptocurrencies has fallen significantly since last March. Its value has risen from $2 trillion to $1.25 trillion. As a result, the sector has lost almost 50% of its value in a few months and the dismissal from Rain Financial is almost justified.

The fall of the crypto markets is a blow to both investors and companies. Indeed, the downward trend affects everyone and causes some inconvenience. To stay afloat, Rain Financial had to lay off dozens of employees. Hopefully the market will recover quickly and situations like this will not happen again.

Source: Finbold

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Eddy Senga

Passionate about cryptos and the blockchain, I would like to introduce this universe to those who don’t know it yet, and encourage them to adopt it like me.

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