The Block reported that stablecoin issuer Paxos disclosed in an email sent to internal employees yesterday (12) that it would lay off up to 20% of its employees; at the same time, payment provider MoonPay also announced a 10% layoff last week. Both are crypto companies that have recently claimed to be in good financial shape but have still had to lay off employees.

Paxos cuts 20% of its workforce: Prioritize focus on core products

The unpublished email stated that Paxos laid off 65 employees, accounting for about 20% of the total staff, which currently stands at about 200 to 300 people.

Paxos co-founder and CEO Charles ‘Chad’ Cascarilla said:

We are laying off 20% of our staff to better position Paxos to capture the huge opportunity in tokenized assets (RWA) and stablecoins.

He added, "With more than $500 million in assets on our balance sheet, we are in a very strong financial position to be even more successful."

He emphasized that he would prioritize focusing on the company's core products and lower the priority of other ancillary products:

In the next few years, stablecoins will grow more than 10 times and become the fulcrum of tokenized financial systems, while launching and scaling new regulated tokens will require more time and cost.

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It is reported that Bloomberg also revealed that Paxos also plans to reduce the provision of its securities settlement services.

MoonPay cuts 10% of its workforce: over-investment, increased costs

On the other hand, MoonPay, a new payment provider actively participating in the Web3 field, also announced last week that it would lay off 10% of its employees due to increased operating costs and lower-than-expected profits.

MoonPay CEO Ivan Soto-Wright wrote in the letter:

We are implementing a series of job cuts and structural changes that will affect approximately 10% of our employees.

According to LinkedIn information, the layoffs affect approximately 30 people.

Soto-Wright admitted that due to over-investment in certain areas and regions, operating costs have increased:

As CEO, this is my responsibility, and not addressing this issue would be irresponsible to our team and shareholders.

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As a popular partner for crypto payment companies, Paxos currently offers a variety of stablecoin products, including PayPal USD (PYUSD) with a market value of approximately US$400 million, Pax Gold (PAXG) with a market value of US$430 million, and Pax Gold (PAXG) with a market value of US$145 million. Pax Dollar (USDP).

A few days ago, the company also launched the Ethereum-based Lift Dollar (USDL), a yield stablecoin that distributes earnings daily.

(Paxos issues a profitable stablecoin USDL, and the reserve income will be automatically distributed to the wallet every day)

On the other hand, MoonPay announced last month the launch of a Web3 tool platform to help large brands including Adidas, Gucci and Puma create communities, operate loyalty, and obtain new revenue sources.

At the same time, MoonPay will also open PayPal payment functions in the EU and the UK, and local users will be able to purchase cryptocurrency on the platform through their PayPal accounts.

This article Stablecoin issuer Paxos and payment provider MoonPay both laid off nearly 20% of their staff: focusing on core products first appeared on Chain News ABMedia.