More crypto layoffs and yet another reminder of the golden startup rule 💼; Is Coinbase collapsing? 🤔; More blurring lines between banks and crypto firms 🏦

Good Morning FinTech, 26 July

Good day Everyone,

And happy Tuesday! Today’s issue is for sure the most interesting one this week. It’s deeply focused on the digital asset space as we’re going to look at more crypto layoffs and yet another reminder of the golden startup rule (you cannot ignore this!), see whether Coinbase is collapsing (it has been in some deep troubles as of late), and more blurring lines between banks and crypto firms (& why some are growing their skin in the game!). So let’s jump straight into the cool stuff:

More crypto layoffs and yet another reminder of the golden startup rule 💼

The (sad) news 📰 One of the oldest crypto exchanges Blockchain.com is cutting 25% of its workforce - or about 150 people, CoinDesk reported. The report cited the bear market and the need to absorb financial losses after the company revealed earlier that it stood to lose the $270M it loaned Three Arrows Capital (3AC).

The impact 👉 The crypto firm will close its Argentina-based offices, cancel team expansion plans in several countries and reduce the salaries of its executives. The reduction brings the firm’s staffing back to January levels (still not bad!).

Things really didn’t add up… 🤷‍♂️ In late April, there were rumors that Blockchain.com was speaking with banks and considering going public. That was a big deal since the crypto exchange would have been only the 2nd crypto firm to debut in public markets in the US. But something didn’t add up. Here’s what I wrote back then:

Now, we see that fundamentals have finally spoken. That said, I wouldn’t be surprised to see a down-round here if Blockchain.com needs to raise…

But more importantly, this is yet another reminder of the golden startup rule. Here’s the takeaway: