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.
“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.
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.