2TM CUTTING DOWN JOBS AT HIGHER PACE DUE TO CRYPTO WINTER
In a statement, which did not include the exact number of people affected, 2TM said the move was necessary due to the economic climate. The statement cited rising interest rates, inflation, and current global financial conditions. O Estado de S. Paulo, a Brazilian newspaper, reported for the first time on the demolition of 2TM.
2TM raised $ 50 million in November to investors including Tribe Capital and 10T Holdings. Earlier this year, the company was linked to a possible agreement with Coinbase Global Inc. which may result in the acquisition of control or the sale of small poles. Negotiations ended in early May.
Coinbase, facing its financial challenges, said on Thursday it would extend the lease term and withdraw pledges for certain jobs. The announcement followed a similar Gemini move, which said it would reduce 10% of its workforce, and reduce Bahrain-based Rain Financial.
2TM is at least the second crypto firm backed by Softbank that has reduced its workforce in Latin America to reduce costs in recent weeks, as the ongoing "crypto winter" has seen tokens like Bitcoin and Ether fall sharply on their record high.
At the end of May, Mexican crypto exchange Bitso told CoinDesk that it had cut off 80 employees' work for more than 700 people.