Canadian Crypto Startup Coinsquare Acquires StellarX After Layoff

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Coinsquare acquisition of Stellarx

 

While the value of Bitcoin screams crypto winter of despair, market upstarts have actually continued to put one foot in front of the other, making significant developmental strides. One of Canada’s leading crypto platforms (no it’s not QuadrigaCX), Coinsquare, made an appealing acquisition, as the Toronto-based business continues to boost its offerings at an unrivaled rate.

StellarX Acquired Amid Crypto Winter

According to a current post from StellarX, the “very first full-featured trading app for Stellar,” it has actually been fully acquired by Coinsquare. Instead of totally incorporating StellarX’s offering into its own platform, Coinsquare has opted to offer the crypto upstart, supposedly backed by Kickstarter alumni, with the resources it has at its disposal for their initial roadmap, absolutely nothing else.

StellarX’s team, who announced their platform in July of 2018, described that a “dedicated team” at Coinsquare, which consists of developers and designers, will help the Outstanding Lumens-centric decentralized marketplace “run and grow under its own brand.”

On the matter of why this deal went through, the StellarX group noted that while they saw success individually, becoming a top-three decentralized exchange near-immediately, they a new home with “regulative experience” and expanded operations.

Therefore, the group identified that Coinsquare is a “ideal fit,” as it has close relationships in the U.S., Europe, and in Canada, and was hellbent on broadening its operations. Likewise, the Canadian business has experience with using the Stellar blockchain, as made apparent by their acquisition of BlockEQ, a Stellar-centric wallet slated to see a rebrand, just a few months prior.

This acquisition will see Megha Bambra, the co-founder of BlockEQ, lead StellarX, along with her Toronto development team. In a remark provided by means of news release, president of CoinSquare, Cole Diamond, expressed enjoyment:

“Stellar is the fastest payment network in the world and we see enormous potential to create industry-leading services on StellarX to further broader adoption.”

Coinsquare and StellarX did not disclose the monetary information of this offer.

Coinsquare Drops Staffers

StellarX’s acquisition follows Canadian fintech media outlet Betakit reported that Coinsquare laid off a great part of its staffers weeks ago. Mentioning sources with familiarity with the regrettable fiasco, the company purged 40 employees throughout the board, bringing its cumulative headcount down to ~ 150. This represents a 27% reduction in total staffers.

It was likewise revealed that even essential C-suite members, including COO Robert Mueller and CFO Ken Tsang, were shown the door. In a declaration, CoinSquare chief executive Cole Diamond mentioned that the current market conditions are the “most unpredictable that you or I have ever seen,” thus mandating hard choices, such as laying off staffers. The Canadian entrepreneur described that Coinsquare needs to be “sensible” in the way it uses its capital, as it needs to survive to meet its long-term aspiration of creating a company that “has a genuine chance at changing the world.”

Featured Image from Shutterstock

 

The post Canadian Crypto Startup Coinsquare Acquires StellarX After Layoff appeared first on NewsBTC.

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