Coinbase Backed Crypto Custody Firm Qredo Cuts 50% of Staff Amidst Industry Wide Strain

• Qredo, a crypto custody infrastructure provider, now has just 6 months of runway left after cutting 50% of staff for the second time this year.
• Qredo raised $80M in funding in Feb 2022 at a $460M valuation but has seen declining business and token price amid the crypto bear market.
• Qredo offers a Layer 2 protocol and custody solution and has raised $94M in VC funding, but its workforce has dropped from over 200 to around 50 employees.

Crypto custody infrastructure provider Qredo, which raised $80 million in funding last year, is facing financial difficulties. The company now has just six months of runway left and has cut 50% of its staff for the second time.

Qredo’s Financial Situation

• Qredo currently has around 50 employees, down from over 200 earlier this year.
• The company has made two rounds of layoffs, letting go of around 50% of staff each time.
• Qredo has just six months of runway left and is actively seeking new funding.
• Qredo’s business and transaction volumes have declined significantly this year along with the overall crypto market.

Qredo’s Funding and Valuation History

• Qredo raised $80 million in Series A funding in February 2022 at a $460 million valuation.
• The company has raised around $94 million in total venture capital.
• In July 2021, Qredo also raised $35 million in a QRDO token sale.
• Qredo’s investors include Coinbase Ventures, Avalanche, Kingsway Capital, and GoldenTree Asset Management.

Qredo’s Offerings and Founding

• Qredo was founded in 2018 and offers a Layer 2 protocol and custody solution.
• The company’s core offerings include the Qredo Network and a custody technique called distributed multi-party computation.
• Qredo’s website states that with its solution, there is no third-party custodian and all funds are recorded on-chain.

Decline in QRDO Token Price

• The QRDO token has fallen nearly 100% from its peak of $9.81 in November 2021.
• QRDO is currently trading around $0.0039.
• The fully diluted valuation of QRDO stands at around $64 million.

Industry Context

• Qredo’s layoffs come as more crypto firms have been cutting jobs amid the ongoing bear market.
• Other companies that have recently reduced headcount include Ledger, Chainalysis, and Chia Network.