Thursday, July 11, 2024

On Christmas Day, the CEO of Kyberswap, a prominent decentralized finance (DeFi) aggregator, disclosed that the company recently underwent a significant reduction in its workforce, with half of its employees being let go. This decision is part of a broader strategy, which includes the development of a voluntary database aimed at assisting these former employees in finding new opportunities within the Web3 industry.

Continued Repercussions from November’s Security Compromise

The co-founder and CEO of Kyberswap, Victor Tran, made an announcement on December 25 that his firm has had to reduce its staff numbers by half. In a statement released on X, Tran attributed this downsizing to the security breach the company suffered in the previous month. This incident led to a loss of over $50 million in assets, marking it as one of the most significant security breaches in the DeFi sector in November. Despite initial claims by Kyberswap that their decentralized exchange aggregator was unaffected, the value of the missing digital assets, initially estimated at $47 million, eventually escalated to over $50 million.

Following the breach, Kyberswap engaged with the responsible hacker(s), who made unconventional demands, including an offer to purchase the platform and a proposal for a twelve-month severance package for employees willing to resign. These demands were initially rejected by the Kyberswap team.

Operational Overhaul at Kyberswap

In his communication, Tran did not explicitly link the employee layoffs to the demands made by the hackers. He instead suggested that the reductions were part of Kyberswap’s commitment to reimbursing users affected by the security breach.

Tran stated, “To honor our commitment to users affected by the breach, we have launched the Kyberswap elastic exploit treasury grant program, covering up to 100% of user losses. We’ve also had to make critical adjustments in our operational strategy, including the temporary suspension of our liquidity protocol initiatives and the Kyber AI project, to maintain our trajectory towards a sustainable future.”

Moreover, Tran revealed that Kyberswap is creating a voluntary database to assist the displaced workers in securing new employment in the Web3 domain. He also encouraged other Web3 industry leaders to consider these skilled professionals for their teams.

We invite your insights and opinions on this development. Please share your thoughts in the comments section below.

Frequently Asked Questions (FAQs) about Kyberswap workforce reduction

What was the reason behind Kyberswap’s workforce reduction?

Kyberswap, a decentralized finance aggregator, had to reduce its workforce by 50% following a significant security breach in November, which resulted in a loss of over $50 million. CEO Victor Tran linked this decision to the financial impact of the breach and the company’s commitment to reimbursing affected users.

How is Kyberswap assisting its laid-off employees?

Kyberswap’s CEO, Victor Tran, announced the creation of a voluntary database to help the laid-off employees find new job opportunities in the Web3 space. This initiative is part of the company’s effort to support its former staff members during their transition.

What changes has Kyberswap made following the security breach?

Following the security breach, Kyberswap has implemented several operational changes, including the launch of the Kyberswap elastic exploit treasury grant program to cover user losses and the temporary suspension of certain projects like their liquidity protocol initiatives and Kyber AI project.

Did the hackers make any demands to Kyberswap?

Yes, after the security breach, the hackers engaged with Kyberswap and made demands including an offer to purchase the platform and a proposal for a twelve-month severance package for employees willing to resign. These demands were initially rejected by the Kyberswap team.

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5 comments

CryptoGuru December 29, 2023 - 12:39 am

wow, this is huge news! Kyberswap cutting half their staff, that’s intense. Security breaches are no joke in the crypto world, gotta be more careful guys.

Reply
TechTalker December 29, 2023 - 1:45 am

These security breaches are becoming too common, what’s going on? The whole industry needs to up their game. Stay safe out there folks.

Reply
BlockchainBobby December 29, 2023 - 4:54 am

Not surprised tbh, after such a big loss, companies have to make tough choices. Hope those affected find new roles soon.

Reply
FinanceWatcher December 29, 2023 - 8:28 am

Interesting to see how DeFi platforms respond to crisis. Kyberswap’s approach is commendable, but will it be enough to regain trust? Only time will tell.

Reply
DeFiFanatic December 29, 2023 - 11:56 am

its sad to see so many people losing jobs, but glad Kyberswap is helping them out. Web3 space needs more of this kind of support, kudos to them!

Reply

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