«Crypto winter» has hit a fast-growing Swiss digital asset start-up, which is cutting jobs as a result, finews.com has learned. A top executive is the most prominent departure.
Crypto Finance AG, a manager of digital assets, is cutting at least seven jobs including the bulk of its sales department, several sources familiar with the matter told finews.com.
Crypto Finance only just concluded its second financing round – for which one of the people told finews.com that investors demanded more cost control from the company, founded nearly two years ago by Brzezek, Tobias Reichmuth and Marc Bernegger.
Brzezek said the company is constantly on the look-out for options to improve the operative performance. The financing had been part of Crypto Finance's business plan, and the job cuts would make room for other hires in technology development, for example.
Bank License Plans
The company is one of the hottest start-ups in the domestic crypto scene: founded in the throes of bitcoin's boom, Crypto Finance quickly attracted hefty backers including Swiss fund-of-fund pioneer Rainer-Marc Frey, Raymond Baer of the eponymous Swiss private bank, investor Daniel Gutenberg and hedge fund expert Philippe Cottier.
The company is made up of Crypto Fund, Crypto Storage and Crypto Broker, a bid to grab the entire value chain of manufacturing, managing, storing, and selling digital assets.
Brzezek initially set lofty goals: Crypto Finance was to clinch a banking license after last year's financing round. The ex-UBS banker has since distanced himself from the idea, but continued to rapidly expand the firm's reach.
Price Drop Hits Valuation
Early last year, Brzezek launched a passive fund that mirrors the first blue chip index for cryptocurrencies, by June Crypto Finance had won Switzerland's first crypto fund permit, and three months ago the company became a Swiss-licensed asset manager for crypto.
«Crypto winter» has put the kibosh on last year's heady growth: a slide in the price of assets such as bitcoin, ethereum, and litecoin has depressed the value of Swiss crypto start-ups by as much as 55 percent, according to a recent study.
Brzezek signaled he is looking forward with Crypto Finance: the company will soon «upgrade its products and services to a level which only a handful of market participants worldwide are in a position to offer» he said.
