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Tuesday, March 28, 2023

Israeli Crypto Company Etoro Lays Off 100 Workers, SPAC Deal Terminated, Company Eyes Private Raise

Israeli Crypto Company Etoro Lays Off 100 Workers, SPAC Deal Terminated, Company Eyes Private Raise – Etoro, a social trading and cryptocurrency investing platform based in Tel Aviv, Israel, is letting go of about 6% of its workforce. CEO and co-founder of the business Yoni Assia stated that the choice was made based on market circumstances.

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“After a time of fast expansion, we chose to take in the current period a more balanced approach between growth and profitability,” Assia said of the market conditions. “As a result, we had to make the tough choice to reduce our personnel in order to maintain sustainable growth over the long term.”

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The company Etoro was established in 2007 by David Ring, Ronen Assia, and Yoni Assia and offers traders access to equities, commodities, indices, and cryptocurrencies. To date, Etoro has raised $322.7 million from investors and has made three acquisitions.

Etoro has chosen to put an end to its proposed SPAC merger with the blank-check company Fintech Acquisition Corp (NASDAQ: FTCV). while also reducing its workforce by 6%.  Apparently, Etoro intended to raise money through an IPO through the SPAC deal, but it now intends to do so privately.

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Etoro allegedly reportedly has its major focus on raising $800 million to $1 billion in private finance, for a total worth of about $5 billion. Before the SPAC transaction was abandoned, it was predicted that Etoro would be valued between $8.8 billion and $10.3 billion.

According to Assia of Etoro, the company is optimistic about the future expansion of the Israeli tech sector. Assia stated in a statement, “We remain confident in our long-term growth strategy and enthusiastic about the future of Etoro.”

The stock of Fintech Acquisition Corp. increased this week as a result of the news. FTCV is currently trading at $9.86 per share, up 0.10 percent from the previous day.

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The layoffs at Etoro come after Verbit announced it would be reducing its workforce by 10% and sacking 80 American and 30 Israeli employees. Numerous cryptocurrency businesses, including Gemini, Bullish, Robinhood, Bitso, Crypto.com, 2TM, Buenbit, and Coinbase, have also laid off workers.

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