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African cryptocurrency exchange Mara is making large-scale staff cuts as it faces a liquidity crisis amid falling revenues and rising operating costs.
According to comments from the exchange administration,downsizing a company is called a restructuring exercise aimed at improving management and eliminating redundant positions. However, according to media reports citing former employees of the exchange, the layoffs were the result of a significant reduction in the influx of funds necessary to maintain the company’s operating activities. For example, the remaining employees not only had their workload increased, but also had their wages reduced.
Analyzing the reasons for the financialdifficulties of the African cryptocurrency exchange, journalists identified several key areas that could have a negative impact on its business processes. Firstly, according to officially unconfirmed data, Mara suffered significantly from the collapse of the FTX cryptocurrency exchange. However, the administration does not disclose the amount of damage incurred.
The next negative factor wasan ill-considered and overly inflated 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 across Africa. According to sources within the company, Mara has attracted student brand ambassadors on campuses in most African countries, as well as generously sponsoring influencers in the crypto space.
In May, the Financial Supervision Authoritysector of South 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 from June 1.
