Paradigm, the institutional liquidity network for crypto derivatives traders, has announced a 15% pay cut across the company.
The salary reductions come in the wake of widespread layoffs throughout the business world, including in the crypto sector. The crypto winter and other adverse events have taken their toll on the industry this year.
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Paradigm States Wage Cuts Reduce Need for Layoffs
Paradigm, which provides tailored on-demand liquidity to institutional traders in terms of pricing, order sizes, and immediacy, stated that the decision to reduce salaries was taken in light of the fallout from the FTX collapse.
The OTC platform commented:
“After the FTX collapse, it is evident that the repercussions are far-reaching and, like many of our customers and peers, we are not exempt. Salary cuts diminish the requirement for layoffs across the ecosystem and have a lesser impact on organizational momentum.”
Paradigm on Twitter
Paradigm acknowledged that the current crypto environment is difficult to navigate, and reducing wages is a tough but necessary decision to maintain “financial flexibility during turbulent times.”
Paradigm was backed by a number of major venture capital firms, such as Jump Capital, in the December 2021 derivatives provider funding round, which raised $35 million. Other investors included Dragonfly Capital, QCP Capital, Nexo, and Digital Currency Group. Many of these partners were affected by the FTX contagion.