The cryptocurrency derivatives trading platform known as Paradigm implemented a 15 percent salary cut across the board.
In a tweet, the OTC company blamed the pay cut on the contagion that resulted from the failure of the cryptocurrency exchange FTX. This firm should not be confused with the crypto investment firm that shares the same name.
In addition to this, Paradigm asserted that salary reductions “reduce the need for layoffs seen across the ecosystem” and will have less of an effect on the organization’s forward momentum.
“These are challenging times, but we need to do the difficult thing in order to maintain the financial flexibility necessary to navigate the turbulent times in which we find ourselves as an industry,” the statement continued.
In recent months, the wider industry has been hit particularly hard by layoffs. Around 260 people were let go by the financial technology company Plaid in December. In the previous month, the cryptocurrency exchange Kraken cut its headcount by 1,100, which is equivalent to 30 percent of its workforce.
In December 2021, Paradigm successfully completed a funding round of $35 million that was co-led by Alameda Research. Alameda Research was the trading firm at the center of the demise of Sam Bankman-cryptocurrency Fried’s empire.
