Kraken Shuts Abu Dhabi Office
Kraken, one of the largest cryptocurrency exchanges in the world has made the news as they announced the shutdown of its Abu Dhabi office. The decision was made as part of the company's ongoing effort to streamline its operations and focus more on its core business. This is interesting becuase the Abu Dhabi office less than a year after securing a license in the region.
Kraken first opened this Abu Dhabi office in 2018 as part of its expansion into the Middle Eastern market. The exchange saw the region as a promising opportunity for growth, as the number of individuals interested in cryptocurrency was on the rise. However, the office struggled to gain traction and did not live up to the expectations set for it.
The shutdown of the Abu Dhabi office is part of Kraken's larger strategy to focus on the regions where it has the most potential for growth. The U.S.-based company had said last year it would reduce its workforce by 30%, or about 1,100 employees, as rising rates and worries of an economic downturn soured the sentiment on crypto. The company has also been making moves to expand its presence in Asia and Europe.
Despite the closure of the Abu Dhabi office, Kraken remains committed to serving its customers in the Middle Eastern region. The company plans to continue serving its clients through its digital platform and customer support teams.
In a statement, a spokesperson for Kraken said, "We remain dedicated to serving our customers in the Middle Eastern region and around the world, and we believe that focusing our resources in the regions where we have the most potential for growth is the best way to do that."
The shutdown of the Abu Dhabi office is not expected to have a significant impact on the company's overall operations, as the office was not a significant contributor to its revenue. The company is confident that its focus on other regions will result in continued growth and success.
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Kraken is an exchange I opened a while ago. I get regular emails from them, not been using it now. I need checked my account as I might have some altcoins there. That's how long since I used then, I forgotten if I have any coins there !
I think I have an account to but I never used it.
With coinbase shutting down Japan, I guess the amount of trading happening isn't profitable enough. Companies will be cutting back down on their expenses and the easiest way for them to do this is by cutting out their workforce/offices. They aren't the first and they probably won't be the last.
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I did not see Coinbase is also closing shop is less profitable areas too. I think this is very interesting.
I feel like this isn't the first time they have done this. I think I wrote a post a while ago about them doing this same thing in another area. I don't think it was Abu Dhabi though. I want to say it was Saudi Arabia or somewhere else. I think it is smart they are trying to stay ahead of the curve. They might have grown a little too fast too quickly like some of the other companies though.
Yes it seems like they expanded too quickly during the last bull market and are now trying to consolidate. I think this kind of behavior is true for a lot of businesses over the past few years. It has caused the most recent layoffs in tech. I'll be interested to see if the trend continues.
Yeah, I am still waiting to see if there is more pain ahead. I am not buying this whole "soft landing" narrative they are trying to sell. Maybe it will happen though.
I just hope the closure of the office does not have a negative impact