Facing challenges in the crypto job market, blockchain data company Chainalysis has confirmed another wave of layoffs in a series of employment reductions across the crypto sector, a report from Bloomberg noted.
Founded in 2014, Chainalysis swiftly gained a reputation for tracking digital asset transactions and its collaborations with government agencies, including the US.
Realigning Amid Changing Market Conditions
In a report late Monday in the US, a spokesperson for Chainalysis Inc. disclosed the company’s decision to part with 15% of its workforce.
The spokesperson elaborated on the rationale and mentioned the company’s focus on efficient growth. The representative expressed that current “market conditions” have necessitated this adjustment to company “expenses.”
The recent layoffs aren’t the first for Chainalysis. Earlier in 2023, the company experienced a downsizing that it claims impacted less than 5% of its workers. At that juncture, Chainalysis had a team strength of approximately 900.
It is worth noting that the recurring layoffs are symptomatic of broader challenges, as the crypto sector at large has witnessed a slew of job losses, especially after last year’s significant dip in token values. The year 2023, in particular, has been notable for the vast number of positions rendered redundant, according to Bloomberg.
Positioned For Future Growth?
Despite the setback, optimism remains within Chainalysis. The spokesperson stressed the company’s positioning for “long-term success” and reiterated its “commitment to its mission.” The spokesperson says the mission is “to build trust in blockchains among government agencies, financial institutions, and crypto businesses.”
Notably, Chainalysis enjoys a backing portfolio, including an endorsement from Singapore’s sovereign wealth fund, GIC. Recently, the Canadian police cracked down on crypto crimes with Chainalysis software.
As disclosed by Bitcoinist, citing a report from the Lethbridge Herald newspaper, the software facilitates the tracking of digital currencies from their initiation point to their eventual deposit on a digital exchange. The software has been controversial across the crypto space due to its tracking capabilities.
When the trail leads to a particular exchange, police can obtain the account holder’s details and the subsequent transaction data. This, in essence, according to the report, means that criminals can no longer find solace in the previously impenetrable blockchain.
Elizabeth Bisbee, an executive for on-chain analytics firm Chainalysis, recently made a statement about Chainalysis tools and how scientifically sound they are. Bisbee, talking about Chainalysis methodologies, noted:
Chainalysis clustering methodologies have not been peer-reviewed in the sense that an academic paper would get peer-reviewed with data and methodology(ies) reviewed in a separate study by other scientists.
The executive further emphasized that the company’s system underwent scrutiny by many data specialists, intelligence professionals, and in-house investigators. Additionally, Bisbee stated that external parties can assess their data independently.
Featured image from Unsplash, Chart from TradingView
