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African cryptocurrency exchange Mara is pursuing massive staff cuts as it faces a liquidity crunch amid declining revenues and rising operating costs.
According to the comments of the exchange administration,The downsizing of a company is referred to as a restructuring exercise aimed at improving management and eliminating redundant posts. However, according to media reports citing former employees of the exchange, the layoffs were the result of a significant reduction in the inflow of funds necessary to maintain the company's operations. For example, the remaining workers not only increased the load, but also reduced wages.
Analyzing the causes of the arisen financialthe difficulties of the African cryptocurrency exchange, journalists identified several key areas that could have a negative impact on its business processes. First, according to officially unconfirmed reports, Mara was significantly affected by the collapse of the FTX cryptocurrency exchange. However, the administration does not disclose the amount of damage incurred.
The next negative factor was the ill-conceivedand the overblown marketing program of the crypto exchange, inconsistent with the level of its operating income. In an effort to expand its presence and influence on the continent, Mara has hired exchange representatives throughout Africa. According to sources inside the company, Mara has attracted representatives of student brands on the campuses of most African countries, as well as generously sponsored influencers in the crypto space.
In May, the Financial Sector Supervisory AuthoritySouth Africa (FSCA) has introduced a new licensing regime, according to which crypto companies must obtain a license to operate in the country within six months, starting June 1.