Blockchain analytics provider Nansen has laid off 43 employees. This is approximately 30% of its workforce, citing the “brutal” conditions in the cryptocurrency market and its own overly aggressive expansion.
The company aims to prioritise its core products, focusing on an updated Nansen information dashboard (Nansen V2) and Nansen Query. It grants customers access to personalised and curated blockchain reports.
Nansen Retracts Claims of Disproportionate Impact on Marketing and Product Divisions
Contrary to an earlier statement, Nansen retracted claims that its marketing and product divisions were disproportionately affected. A spokesperson clarified that the layoffs were across the board.
Moreover, without any factual basis to suggest, specific teams were hit harder. Therefore, the company also announced that open positions, in addition to the recent layoffs, would remain unfilled.
Nansen currently retains over 100 employees. This downsizing follows similar actions by other blockchain analytics firms.
Recovery in Digital Asset Prices Despite Overall Market Decrease
In February, Chainalysis reduced its staff by approximately 5%, while Messari implemented a 15% workforce reduction. The entire cryptocurrency market has experienced a 14% decrease in value over the past 12 months. This amounts to a total $1.18 trillion, according to CoinGecko data.
Meanwhile, digital asset prices have seen a 30% increase this year, indicating a recovery from the previous year’s downturn. However, leading cryptocurrency exchange Binance stated its intention to reassess staffing in order to maintain organizational agility and dynamism.
Moreover, the company aims to optimise talent distribution across the organisation and still plans to fill numerous open roles. The spokesperson explained that Binance seeks to evaluate talent and expertise in critical positions.
Nansen CEO Acknowledges Over-expansion and Deviation from Core Strategy
Nansen’s CEO, Alex Svanevik, took responsibility for the company’s over-expansion, acknowledging that their cost base exceeded the current situation.
Svanevik stated that their intention was to invest and expand in a challenging market where others were scaling back. However, this led to undertaking activities that deviated from Nansen’s core strategy.
Nevertheless, Svanevik assured stakeholders that the company has sufficient funds to sustain operations for several years. In December 2021, Nansen successfully raised $75 million in a series B funding round. It valued the company at $750 million, based on PitchBook data.
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