FalconX, one of the largest digital asset prime brokers in the industry, has cut roughly 10% of its global workforce as the crypto market slump drags on longer than many expected. Bloomberg first reported the FalconX crypto layoffs on Monday, citing people familiar with the matter, though the company had not publicly confirmed the news at the time of writing. The cuts land at a delicate moment for a firm that spent much of last year expanding, and they raise a bigger question: how long can trading firms keep absorbing a market this quiet before something has to give?
Summary
Key takeaways
- FalconX has laid off about 10% of its global workforce, according to Bloomberg.
- Before the cuts, the firm employed roughly 350 people across the US, UK, Singapore and Hong Kong.
- FalconX plans to withdraw its license application with the Monetary Authority of Singapore and pivot toward crypto derivatives trading.
- The company intends to expand its footprint in Europe while keeping a presence in Asia.
- Bitcoin has fallen about 50% from its October peak near $126,000 to below $64,000, pressuring trading volumes industry-wide.
FalconX Cuts 10% of Workforce Amid Crypto Market Slump
The layoffs at FalconX mark another sign that the current downturn is testing even the industry’s better-capitalized players. FalconX built its reputation as a digital asset prime brokerage and grew into one of the sector’s bigger names after acquiring crypto ETF issuer 21shares last November. That acquisition signaled ambition and scale — which makes the workforce reduction feel more like a strategic correction than a company in crisis.
Before the cuts, FalconX employed around 350 people spread across the United States, the United Kingdom, Singapore and Hong Kong. Losing roughly a tenth of that staff trims the company down to a leaner operation heading into what some analysts believe could be a longer stretch of depressed trading activity.
Strategic Shift in Regional Focus and Product Offering
FalconX isn’t just cutting costs — it’s redrawing its map. The company is reshaping where and how it does business, stepping back from one regulatory track in Asia while doubling down on derivatives and a bigger European push.
Withdrawal of Singapore License Application
FalconX plans to withdraw its license application with the Monetary Authority of Singapore, according to Bloomberg’s sourcing. The company still intends to maintain a presence in Asia, but the retreat from the Singapore licensing process suggests a narrower regulatory footprint in the region going forward, at least for now.
Focus on Crypto Derivatives and European Expansion
In place of the broader Singapore push, FalconX is reorienting its regional strategy around crypto derivatives trading, while simultaneously looking to grow its business in Europe. That combination — leaning into derivatives while chasing new European market share — points to a firm betting that trading products beyond simple spot exposure will matter more in the next phase of the cycle.
Market Conditions Driving Cryptocurrency Firm Adjustments
The backdrop here explains a lot. Bitcoin was last trading below $64,000, marking a drop of about 50% from its October peak near $126,000. That kind of decline doesn’t just dent portfolios — it dries up the trading volume and retail activity that prime brokers and exchanges depend on for revenue.
Some analysts quoted in Cointelegraph’s reporting believe Bitcoin hasn’t yet found the bottom of its current cycle, which would mean continued pressure on trading firms rather than a quick rebound. That’s the core tension driving this round of layoffs: firms are cutting now because they don’t see relief arriving soon.
Why this matters: FalconX is not alone. The company joins a growing list of crypto firms trimming staff this year, including Coinbase, Crypto.com, Luno and Gemini, alongside crypto infrastructure firm BitGo, which a reduction of 15% in staff numbers occurred, while the Ethereum Foundation implemented a separate workforce reduction of 20% as component of its organizational restructuring. When this many firms — spanning exchanges, infrastructure and foundations — cut staff in the same window, it stops looking like isolated belt-tightening and starts looking like a shared read on where the market is headed.
Industry-Wide Response: Diversification Beyond Spot Trading
The other half of this story is about where crypto firms think future revenue will come from — and increasingly, that’s not spot trading. A recent CoinGecko report found the sector known as crypto TradFi, which includes tokenized assets, derivatives and other products tied to traditional finance, grew fivefold between January 2025 and June 2026, reaching a value of $6.6 billion. Tokenized stocks and commodities have emerged as leading drivers of that growth.
Coinbase’s own numbers back up the trend. The exchange missed earnings expectations in its latest quarter but reported that 88% of its during the second quarter, revenue sources beyond spot Bitcoin trading expanded significantly, with derivatives, prediction markets and tokenized assets becoming progressively more substantial contributors. That figure is worth sitting with: it suggests the biggest names in the industry are quietly rebuilding their business models around products that don’t depend on retail traders buying and selling coins directly.
FalconX’s own pivot toward derivatives and its European expansion plans fit neatly into that same pattern. Whether the strategy pays off will likely depend on how long the current crypto market downturn lasts — and whether the broader shift toward crypto derivatives trading and diversified revenue streams is enough to offset the drop in spot activity that triggered these cuts in the first place.
FAQ
How many employees did FalconX lay off and what was its workforce size before the layoffs?
FalconX laid off about 10% of its global workforce. Before the layoffs, it had roughly 350 employees across the US, UK, Singapore, and Hong Kong.
What changes is FalconX making to its regional strategy amid these layoffs?
FalconX plans to withdraw its license application with the Monetary Authority of Singapore and is reshaping its regional approach to focus on crypto derivatives trading while expanding its business in Europe.
What market factors influenced FalconX’s decision to lay off employees?
The layoffs followed a steep drop in Bitcoin’s price, which fell about 50% from its October peak near $126,000 to below $64,000, reducing trading volumes and retail activity.
How are crypto exchanges adapting to market downturns beyond traditional spot trading?
Many exchanges are expanding into the crypto TradFi sector, including tokenized assets and derivatives, which has grown fivefold to $6.6 billion between January 2025 and June 2026.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
