Anchorage Digital is the latest in a long list of cryptocurrency companies to announce strategic layoffs during the extended crypto winter, which is now approaching 18 months long.
The company has parted ways with around 20% of its staff, some 75 people, as the bear market wears on. The layoffs are part of a realignment within the company that has taken several months to complete, and unrelated to recent news banking events, a spokesperson told Blockworks.
Anchorage Digital offers institutional clients a range of services, including qualified custody for crypto assets. Among those assets: Non-fungible tokens (NFTs), which have not proven to generate strong demand by the kind of institutional clients the company serves.
A spokesperson told Blockworks that “Our business has seen low institutional demand for certain classes of digital assets, and as a result, Anchorage Digital will reduce focus on them. This includes general demand for NFTs, which means that after a recent NFT feature release, we will reduce investment in future institutional functionality.”