FalconX lays off roughly 10% of workforce amid prolonged crypto downturn

Digital asset brokerage FalconX has laid off about 10% of its 350-person workforce, citing a prolonged crypto market downturn. The move follows similar cuts at Coinbase, Gemini, and others, as Bitcoin trades at less than half its peak value. In response, FalconX is shifting its Singapore strategy to focus on derivatives, reflecting an industry-wide pivot away from spot trading.

FalconX workforce reduction

• ▪Prior to the layoffs, FalconX employed about 350 people across the U.S., U.K., Singapore, and Hong Kong
• ▪The layoffs at FalconX were made in preparation for a prolonged downturn in the cryptocurrency market
• ▪Digital asset prime brokerage FalconX laid off roughly 10% of its global workforce

Singapore strategy shift

• ▪FalconX plans to withdraw its license application with the Monetary Authority of Singapore
• ▪While changing its Singapore strategy, FalconX intends to maintain its Asian presence and expand its European business
• ▪FalconX is changing its strategy in Singapore to concentrate on crypto derivatives trading

Crypto industry layoffs

• ▪Other crypto companies that have recently reduced their workforces include Coinbase, Crypto.com, Luno, Gemini, and BitGo
• ▪The Ethereum Foundation also recently laid off 20% of its workforce amid a strategic restructuring

Market downturn pressures

• ▪Bitcoin was recently trading below $64,000, which is about 50% lower than its October peak of approximately $126,000
• ▪Crypto exchanges are under pressure as digital assets have retreated from their highs of the previous year, reducing trading volumes

Exchange pivot to derivatives

• ▪Coinbase reported that 88% of its net revenue in the second quarter came from businesses other than spot Bitcoin trading
• ▪A CoinGecko report found the "crypto TradFi" sector, including derivatives, grew fivefold to $6.6 billion between January 2025 and June 2026
• ▪In response to the market downturn, many crypto exchanges are expanding their business beyond spot trading