Hours ago, the Argentine bitcoin (BTC) and cryptocurrency broker, Buenbit, announced that it is in a process of downsizing and that they will temporarily stop their international expansion plan.
“Given a new global context, we are redefining our strategy to become more robust and efficient,” explained the company’s founder and CEO, Federico Ogue, through his twitter account.
The goal, according to the employer, is focus on the operation of the countries where the broker is already established today (Argentina, Peru and Mexico) in order to “maintain a self-sustaining and efficient structure”.
“Instead of focusing on growing and opening new markets, we are going to focus on improving everything we already have. So 3 months from now I should [verse] an improvement in service.
Federico Ogue, CEO of Buenbit
During the day, rumors circulated that the recent widespread price drop of cryptocurrencies — more precisely those of the Terra network — could have had to do with the decision to reduce staff and stop the expansion plan. But, from Buenbit, they deny that this is so. “This has nothing to do with what happened with UST and Terra”explains Ogue and adds: “it is a decision that we have been working on for months”.
Already on May 13, in the midst of the collapse of the aforementioned network (whose cryptocurrencies were offered by Buenbit), Ogue had clarified that, as a company, they do not have their own exposure to any cryptocurrency. “Rumors are just rumours, the important thing is to go to the source”, said on that occasion.
“It’s the lesser evil, as much as it hurts”
Who else was expressed today about what happened is Matías Nisenson, co-founder of the investment fund Myelin VC, which manage capital of investors for the development of Buenbit.
This specialist points out that, recently, there was a general drop in the price of technology companies on stock exchanges. Some lost 75% so far in 2022.
In this context, investment funds, such as Myelin (which do not work with their own money but with investors) “begin to regulate the money they invest” and this has consequences for start-up companies:
«Startups like Buenbit, which had plans to raise more capital to continue growing, find themselves with a changing macro situation and with investors who are more ‘poops’, they do not want so much risk. They prefer companies that grow less but are profitable.
Matías Nisenson, co-founder of Myelin VC
In such a situation, explains Nisenson, the CEO of a company has two options: to continue as it is, waiting for someone to grant it more capital (with the risk of melting down and having to lay off 100% of the team); either do what is necessary so that the company can sustain itself without external capital (even if that means having to lay off 50% of the team).
“Any experienced leader is going to choose option B, it is the lesser evil, as much as it hurts”, says Nisenson and adds: “unfortunately Buenbit is not the only one choosing this path, in my personal portfolio there are two more companies doing the same ».
“This decision does not affect users”
From the social networks and the Telegram group of the exchange born in Argentina, confirmed that “this decision does not affect users”.
As CriptoNoticias has reviewed, the Buenbit platform offers the service of buying and selling various cryptocurrencies and tokens; makes it possible to obtain returns on deposits; and also provides its users with a free debit card.