TechFlow reported, citing four知情人士s from The Block, that cryptocurrency custody infrastructure provider Qredo has cut another 50% of its workforce and can sustain operations for approximately six more months. Earlier this year in September, Qredo had already laid off around 50 employees. The company now has about 50 employees, down from over 200 at the beginning of the year.
Two sources indicated that Qredo is actively seeking new funding and exploring strategic merger and acquisition opportunities to survive. 10T Holdings, the lead investor in Qredo’s Series A round, is assisting in these efforts. A Qredo spokesperson stated that due to the prolonged crypto winter, the company has chosen to downsize in order to focus on core businesses such as Web3 wallets and custody solutions.
Qredo's core offerings include its Layer 2 protocol (known as the Qredo Network) and a custody technology called distributed Multi-Party Computation (dMPC). According to Qredo’s website, “Qredo has no third-party custodians. All funds and transactions are recorded on-chain within the Qredo Network and secured by unique [dMPC technology].”
Founded in 2018, Qredo has raised approximately $94 million in venture capital funding to date. It completed an $80 million Series A round last year at a $460 million valuation. In July 2021, the company also raised $35 million through the sale of its QRDO token. Qredo’s investors include Coinbase Ventures, Avalanche Kingsway Capital, and GoldenTree Asset Management.
