FalconX Lays Off 10% of Staff as Crypto Market Slump Continues
by Maisie Morrison · BlockonomiTLDR
Table of Contents
- FalconX laid off about 10% of its global workforce, citing a prolonged downturn in the crypto market.
- The prime brokerage is withdrawing its Singapore license application and shifting its regional focus to derivatives trading.
- FalconX had roughly 350 employees across the US, UK, Singapore and Hong Kong before the cuts.
- The company joins Coinbase, Crypto.com, Luno, Gemini and BitGo in trimming staff this year.
- Bitcoin has dropped about 50% from its October peak near $126,000, pressuring trading volumes industry wide.
FalconX, a digital asset prime brokerage, has cut about 10% of its global workforce. The move comes as the company braces for a longer downturn in crypto markets.
Bloomberg first reported the layoffs on Monday, citing people familiar with the matter. FalconX had not publicly confirmed the report at the time of writing.
The company acquired crypto ETF issuer 21shares last November. It has grown into one of the larger players in digital asset trading services.
Before the layoffs, FalconX employed roughly 350 people. Staff were spread across the United States, United Kingdom, Singapore and Hong Kong.
Singapore Strategy Shifts
FalconX plans to withdraw its license application with the Monetary Authority of Singapore. The company is reshaping its regional approach around crypto derivatives trading.
FalconX intends to keep a presence in Asia despite the change. At the same time, it plans to expand its business in Europe.
Cointelegraph reached out to a FalconX spokesperson for comment. No response had been received at the time of publishing.
The layoffs place FalconX alongside a growing list of crypto firms cutting staff this year. Coinbase, Crypto.com, Luno and Gemini have all trimmed their teams in recent months.
Crypto infrastructure firm BitGo also cut 15% of its staff. The Ethereum Foundation separately cut 20% of its workforce as part of a restructuring effort.
The wave of layoffs follows a steep drop in the price of Bitcoin. The asset was last trading below $64,000.
That marks a drop of about 50% from its October peak near $126,000. Lower prices have weighed on trading volumes and retail activity across the industry.
Some analysts believe Bitcoin has not yet hit the bottom of its current cycle. That view suggests pressure on trading firms could continue.
Exchanges Look Beyond Spot Trading
Many crypto exchanges are responding by expanding beyond spot trading. A recent CoinGecko report found the sector known as crypto TradFi grew fivefold between January 2025 and June 2026.
That sector includes tokenized assets, derivatives and other products tied to traditional finance. It reached a value of $6.6 billion by the middle of this year.
Tokenized stocks and commodities have become leading drivers of that growth. The shift shows how exchanges are trying to diversify their revenue.
Coinbase’s latest earnings reflect that trend. The company missed earnings expectations but reported that 88% of its second quarter net revenue came from businesses other than spot Bitcoin trading.
Derivatives, prediction markets and tokenized assets played a growing role in that revenue. The results point to how the crypto trading industry is changing its business model.