FalconX, a digital asset prime brokerage that acquired crypto ETF issuer 21shares in November 2025, has just cut about 10% of its total workforce. A Bloomberg report citing anonymous sources mentioned that prior to this layoff, the company employed around 350 people across the United States, United Kingdom, Singapore, and Hong Kong. To date, FalconX representatives have not provided any official comments regarding their staff reduction.
In addition to reducing its workforce, the company is restructuring its strategy in Singapore. FalconX has withdrawn its license application from the Monetary Authority of Singapore (MAS) and is shifting its operations toward crypto derivatives trading. Despite withdrawing from the Singapore licensing process, the company emphasized that it will maintain its presence in Asia while expanding its business operations in Europe.
The Growing List of Victims of Bitcoin’s Price Fall
This pressure for efficiency comes right as Bitcoin continues to trade below the $64,000 level. This figure marks a drop of about 50% from its all-time high of over $126,000 last October. With the market conditions remaining sluggish, analysts warn that the current Bitcoin price might not necessarily represent the market bottom.
With this move, FalconX joins a long list of crypto companies scaling back their operations. Major names such as Coinbase, Crypto.com, Luno, Gemini, and BitGo have already taken similar paths. Key entities like the Ethereum Foundation also previously cut 20% of their workforce through a strategic restructuring.
Why are Derivatives Becoming the Main Choice Now?
Behind these layoffs and license withdrawals, a shifting revenue pattern is visible in the crypto industry. CoinGecko data records that the conventional financial instruments sector in the crypto space - which includes tokenized assets and derivatives - grew fivefold. The valuation of this sector expanded to $6.6 billion between January 2025 and June 2026.
Dependence on Bitcoin spot trading is slowly being phased out. Coinbase’s second-quarter earnings report shows clear evidence of this: 88% of their net revenue actually came from business lines outside of Bitcoin spot trading. This fact explains the common thread of why FalconX chose to abandon its Singapore licensing application in order to pivot its focus toward targeting the derivatives market.
For industry players and employees, this string of shake-ups highlights a harsh reality: businesses relying purely on spot crypto transactions are no longer enough to survive in the midst of a market winter.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
