Nansen Blockchain firm reduces staff ‘surface area’ by 30%
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The crypto bear market is still gripping many companies, including blockchain analytics firm Nansen which has just announced a major layoff.
On 30 May, Nansen CEO Alex Svanevik announced an “extremely difficult decision” to reduce the size of the Nansen team. In a statement to employees, he says tired that staffing should be reduced by 30%.
“We have to part with incredible people who have contributed to Nansen with hard work, intelligence and creativity. And I am deeply sorry for everyone affected.”
Nansen Bear Market Blues
Svanevik mentioned two main reasons for the dismissals at Nansen. First, he said the company scaled up too quickly to cover its “breakneck growth” in the early years of operations.
Before apologizing for the mistake, he added that this growth was not really part of Nansen’s core strategy.
Second, he said the past year has been “brutal for crypto markets.” Diversification of income from corporate and institutional clients has been seen, he said, before adding:
“Our cost base is too high for where the company is today.”
He added that Nansen had “several years of runway”, but only if it can build a sustainable business. This involves “reducing our surface” to a smaller Nansen team, he said.
According to its LinkedIn, Nansen was founded in 2020 and employed as many as 200 employees. According to Crunchbase, the firm has raised $88.2 million in funding over four rounds. Their latest funding was raised on December 16, 2021 from a Series B round that raised $75 million at a pre-money valuation of $675 million.
Crypto layoffs continue
Despite 45% crypto market growth in 2023, industry operators like Nansen continue to suffer.
Earlier this month, it was announced that Paradigm-backed NFT ownership platform Tessera was shutting down. The move comes as NFT markets have fallen more than 80% over the past 12 months in terms of volume.
On May 8, Australian blockchain gem tracker Everledger was quietly placed into voluntary administration, according to Layoffs.fyi.
Furthermore, Tom Brady’s NFT startup Autograph cut nearly a third of its workforce in early May. April saw staff cuts and turmoil at risk management and crypto compliance company TRM Labs and Anchorage Digital.
In addition, Dapper Labs, Messari, Immutable, Polygon, Fireblocks, Gemini, Chainalysis, Blockchain.com, Crypto.com, Coinbase, ConsenSys, Huobi, SuperRare, Genesis and Wyre have all cut staff in 2023.
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