Kyber Network implements workforce reduction following exploit

Internal Dispute Sees Co-Founder Depart 5ire5ire, the Dubai-based blockchain platform, is facing a departure of one of its co-founders, Vilma Mattila, due to an internal dispute with her fellow co-founders.In discussion with Tech in Asia, Mattila confirmed her upcoming resignation, stating that she disagreed with the management and financial decisions made by the other co-founders without her consent. The exact timeline of her departure was not disclosed.Photo by bady abbas on UnsplashIndian originsMattila, who was already recognized as an angel investor, co-founded 5ire alongside Indian nationals, CEO Pratik Gauri and CTO Prateek Dwivedi. The company gained attention last year after a successful series A funding round that valued it at a remarkable $1.5 billion, establishing its status as a blockchain unicorn.While the start-up project has established itself in Dubai, its origin story leads back to India. In 2022, 5ire entered into a partnership with the Indian government via Atal Tinkering Labs (ATL). ATL is running an initiative to create and promote a culture of innovation and entrepreneurship in India. As part of that program which is being run in more than 10,000 Indian schools, 5ire collaborated with ATL to provide a blockchain module.Although headquartered in Dubai, the project still maintains that it is “a network of local developer communities established in various cities across India.” It has also been active in the country that makes for its administrative home. Last month, Abu Dhabi University in the United Arab Emirates hosted its first 5ire Web3 and blockchain hackathon.The university had signed a Memorandum of Understanding (MoU) with 5ire in February, with a view towards strengthening blockchain education, research and entrepreneurship, while maintaining a focus on sustainability and accessibility.$100 million raiseIn July 2022, it emerged that 5ire had raised $100 million from the UK-based Sram & Mram Group, an international conglomerate that concerns itself with projects in South and Southeast Asia. It got $10 million on signing the deal, with other tranches to follow. As of January, it had called off $20 million of that funding.5ire is positioning itself as “the world’s first blockchain unicorn with sustainability at its core.” The project seeks to align itself with the Sustainable Development Goals (SDGs) set out by the United Nations. It’s a layer one EVM-compatible smart contract platform that focuses on the development of a for-benefit blockchain ecosystem, aligned with the United Nations SDGs.Working towards mainnet releaseThe company has been diligently working on the development of 5irechain, a blockchain designed around the principles of the “Fifth Industrial Revolution,” from which the company derives its name. The launch of its mainnet is anticipated to take place in the coming quarters. In November 2022, it launched its Thunder (Alpha) testnet. Testnet Thunder (Beta) went live in February of this year.As the departure of Vilma Mattila unfolds, the future direction and leadership of 5ire will come under scrutiny. It remains to be seen how this internal dispute will impact the company’s progress and reputation in the blockchain industry.

Indian Crypto Exchange CoinDCX Implements Workforce ReductionIndian cryptocurrency exchange CoinDCX has recently taken the step of reducing its workforce by approximately 12%.The strategic move was announced by way of a statement from CoinDCX founders Sumit Gupta and Neeraj Khandelwal, published to the firm’s website on Tuesday. The cutback is being made in response to the prolonged bear market and the consequences of India’s Tax Deducted at Source (TDS) policy on domestic exchanges.Photo by Hardik Joshi on UnsplashMacroeconomic and crypto market headwindsGupta and Khandelwal described the decision that they’ve taken as being challenging, although they outlined that it was taken with a view toward steering the business to profitability and sustainability amidst trying macroeconomic conditions in the crypto sector.The company has encountered significant headwinds due to the overall tough conditions in the crypto market. These challenges have resulted in decreased trading volumes and revenues for CoinDCX. In light of these circumstances, the company has determined that resizing specific teams within the organization is necessary in order to secure the viability and long-term growth of the operation.71 jobs cutApproximately 71 employees are being affected by the workforce reduction, out of CoinDCX’s total workforce of around 590 based in Mumbai. To mitigate the impact on these employees, the company has implemented a support package aimed at providing comprehensive assistance during this transition.This package includes severance pay equivalent to the full notice period, an extra month of salary, compensation for variable pay and incentives, encashment of unused leave days, extension of health insurance and wellness benefits, and access to counseling support.In spite of the necessity for workforce reduction, CoinDCX’s outlook on the Indian market remains optimistic. The company remains steadfast in its commitment to driving crypto and Web3 adoption to a target of 50 million individuals by 2025.No further reduction plansThe founders emphasized that this reduction is a unique, targeted action and that they have no further plans for team reductions. They claim to have engaged in thorough discussions with senior leaders within the company to ascertain the best path forward, with a commitment to overcoming challenges and reinforcing the company’s foundation.In spite of this setback CoinDCX maintains that its vision is intact, encompassing a presence not only in the Indian market but also further afield.Industry trendCoinDCX’s current struggle has been mirrored by a plethora of leading crypto exchanges over the course of recent months. In July, it emerged that Seychelles-based Kucoin was cutting jobs although the firm’s CEO asserted that it wasn’t a layoff plan and more so a reevaluation of the organization’s structure.Earlier that month, Thai digital asset exchange Bitkub cut its headcount in an effort to manage costs during this period of challenging market conditions. Recently, leading global crypto exchange Binance announced one thousand job losses while stating that more jobs may be cut in the future.The decision made by CoinDCX underscores the broader struggles that startups and businesses within the crypto space face. With the bear market’s impact and regulatory pressures, companies are being compelled to make difficult choices in pursuit of long-term sustainability.

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.