News
Despite cryptocurrency payments processor MoonPay laying off 10% of staff
MoonPay, the cryptocurrency payments processor, has laid off 10% of its workforce, citing high-cost facilities and lower-than-expected operating margins. This decision comes despite the company’s claim to be financially sound with “years of runway” ahead. In recent years, MoonPay has positioned itself mainly in high-risk segments such as online trading and online casinos. PayRate42 confirms its Orange rating!
Internal announcement
In an internal email obtained by The Block, MoonPay co-founder and CEO Ivan Soto-Wright addressed the layoffs, explaining that the company, while cash flow positive, needs to optimize own cost structure. “Today we are implementing a series of role eliminations, role transfers and structural changes impacting approximately 10% of our staff,” Soto-Wright wrote.
The email did not reveal the exact number of affected employees, but based on MoonPay’s current headcount of approximately 300 employees, this reduction translates to approximately 30 people. A spokesperson for MoonPay confirmed the contents of the email but declined to specify the number of employees laid off.
Financial performance
Despite MoonPay’s stable financial position, Soto-Wright emphasized the need for these adjustments to address the company’s high operating costs. “Unfortunately our operating margins are not where they should be,” she noted. “Although we are cash flow positive, our cost structure is too high due to overinvestment in certain areas and geographies. Ultimately, this is on me as CEO and would be irresponsible in towards our team and our shareholders do not address this issue.”
Affected employees are expected to receive separation packages, Soto-Wright wrote.
Recent developments
The layoffs come as MoonPay launches several new products and services. Recently, the company introduced a new web3 tools platform for brands entering the cryptocurrency industry, integrated PayPal to facilitate cryptocurrency purchases and sales for US users, and partnered with BitPay to streamline crypto transactions.
Context and risk assessment
MoonPay, backed by high-profile investors such as Paradigm and Coatue, was valued at $3.4 billion following a $555 million Series A funding round in 2021. However, the company has faced significant changes in staff, with at least 40 employees having left or been fired. go into the last year.
PayRate42 has included MoonPay in its Orange Risk and Orange Compliance lists. This designation reflects our assessment of the company’s potential financial and regulatory risks. Despite the announced layoffs, we maintain this assessment. This shows that the company’s management is cost-conscious, which is a positive and responsible approach.
Investors and users are advised to monitor MoonPay’s ongoing adjustments and evaluate their impact on the company’s operational and compliance landscape.
Learn more about MoonPay:
8 Green
19901 City of Dover
Delaware
United States
PayRate42 is a rating agency specializing in payment processors. Our primary goal is to protect merchants and consumers by ensuring transparency through the evaluation and rating of financial service providers. Our primary focus is on high-risk payment processors (HRPPs) that operate outside the established regulatory framework.
This version was published on openPR.