Luno, the cryptocurrency exchange and wallet platform, slashed 20% of its workforce this July as part of a broader wave of layoffs rippling through crypto. The company joined at least 11 other firms announcing cuts in the same month, signaling continued pressure on digital asset companies navigating a bear market and regulatory headwinds.
Gnosis, the decentralized prediction market protocol, also cut staff during the same period. The parallel announcements reflect a pattern of contraction spreading across exchanges, protocols, and infrastructure providers that expanded aggressively during the 2021 bull run.
July's layoff cluster arrives after months of reductions spanning the industry. Major players including Celsius, Voyager Digital, and Genesis slashed teams following the collapse of FTX and Three Arrows Capital last year. Smaller platforms and protocol developers have since followed suit.
Luno's 20% cut affects headcount across the platform, which operates in multiple countries including South Africa, Malaysia, and Indonesia. The exchange competes in emerging markets where crypto adoption remains strong despite volatility in developed regions. The restructuring likely reflects both macro headwinds and competitive pressures from larger rivals like Binance and Kraken.
The July wave differs from earlier 2023 layoffs in scope. Rather than single-firm announcements, multiple companies moved simultaneously, suggesting coordinated responses to shared pressures. Crypto firms face declining trading volumes, lower user acquisition costs, and reduced venture funding. The sector raised significantly less in H1 2023 compared to prior years.
Regulatory clarity remains elusive across major markets. The SEC's escalating enforcement actions against major exchanges and the proposed FIT21 bill in the U.S. Congress create operational uncertainty. Companies operating internationally face fragmented compliance requirements.
Luno and Gnosis joins a lengthening list of restructurings that includes