Blockchain data analytics firm Nansen Research is slashing its workforce by 30%. Layoffs have been widespread across crypto businesses in the past year.
Following the latest move, Nansen joins the growing list of companies such as Coinbase, Blockchain.com, ConsenSys, Gemini, Huobi Polygon Labs, Elliptic, Messari, Dapper Labs, Chainalysis, Immutable, etc., which have trimmed their staff amid heightened crypto winter.
CEO Alex Svanevik announced on Twitter the “extremely difficult decision” and took full responsibility. The exec pointed out that Nansen’s attempt to expand into business areas that were not core to the company’s strategy backfired. Svanevik added that the team will focus on targeting fewer things but doing them “extremely well.”
“Firstly, we scaled up the team on the back of breakneck growth in our first years of operating. We wanted to invest and build in a tough market when others needed to scale back. This organic growth led the organization to taking on surface areas that’s not truly part of Nansen’s core strategy.”
Nansen was founded in 2019 and gained tremendous traction in less than three years. During the same period, the company witnessed the diversification of revenues via enterprise as well institutional clients. However, owing to the brutal market condition in the past year, Nansen’s cost base surged too high relative to where the company is today. As a result, the priority is to build a sustainable business, according to the CEO.
“I’m endlessly grateful to the incredible people we are parting ways with. They will go on to achieve great things, and we’ll ensure they get a soft landing, with severance and support.”
Besides, Nansen raised $75 million via a Series B funding round led by the venture capital firm Accel in December 2021. Other participants of the round included GIC, Andreessen Horowitz (a16z), and Tiger Global.
In March, the Singapore-based company launched a new solution built on the Google Cloud platform, dubbed ‘Nansen Query,’ that is designed to offer a comprehensive data solution to crypto-focused teams and projects.
According to the report, the new offering was expected to improve multi-chain data access, assisting entities to make better customer, product, and investment decisions.