These are very interesting times for Bitcoin exchanges. A lot of consumers and institutional traders want exposure to volatile cryptocurrencies. For Coinfloor, the oldest exchange in the UK, times are a bit tougher. The company is forced to let a good number of employees go to remain financially healthy.
Coinfloor Appears to Be Struggling
It is somewhat strange to take note of the issues affecting Coinfloor. Being the UK’s oldest exchange has earned the firm a lot of “street cred’ with its users. Their service has not suffered any major setbacks over the years either. Unfortunately, the revenue is insufficient to keep operating as the firm has done for several years. Letting employees go is the most viable course of action for the trading firm.
To date, Coinfloor employes over three dozen staffers. Half of those individuals will be let go in the coming months. When companies grow, they often face tough decisions along the way. Current market conditions have not been overly positive for Bitcoin or other cryptocurrencies. This poses a few problems for exchanges and trading platforms around the world.
A decline in overall trading platform volume forces the company’s hand in this regard. It appears the overall cryptocurrency trading volume remains on the low side of the scale. This trend has worsened throughout 2018. Lower cryptocurrency prices do not necessarily entice investors and speculators, at least in the United Kingdom. For now, the company will focus on competitive advantages and serving their clients in an optimal manner.
Growing Competition Intensifies
Back in 2013, Coinfloor was one of the very few trading platforms for Bitcoin. Especially in Europe, competition was nearly nonexistent. Over the years, a lot has changed and new competitors emerged successfully. Over a dozen UK-based exchanges are in operation today. All of them note varying degrees of success in terms of user base and volume.
For the time being, not much will change for the company’s services. Coinfloor still aims to attract financial institutions for trading purposes. Additionally, they try to cater to financial professionals looking to invest in Bitcoin. Other companies across the UK are pursuing the exact same “markets.”
At this time, Coinfloor is ranked 120th in terms of global exchanges on CoinMarketCap. Its Bitcoin pairs are most popular in terms of volume. Bitcoin Cash trading is also available in exchange for the Pound Sterling. No other markets are available on this exchange at this time. It is unclear if the company plans to expand its list of offerings in the future.
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