Israeli Crypto Company Etoro Lays Off 100 Workers, SPAC Deal Terminated, Company Eyes Private Raise

The integer currency steadfast Etoro has revealed it is laying disconnected 100 workers oregon astir 6% of the company’s workforce. Furthermore, Etoro disclosed that the institution is terminating the peculiar intent acquisition institution (SPAC) merger planned with Fintech Acquisition Corp. Etoro says the institution plans to rise funds privately present and aims to rise $800 cardinal to $1 billion.

Etoro Cuts Staff, SPAC Deal Canceled

• The Tel Aviv, Israel-based societal trading and crypto concern level Etoro is laying off astir 6% of the firm’s staff. The company’s CEO and co-founder Yoni Assia said the determination was based connected marketplace conditions.
• “Due to the existent marketplace conditions and aft a play of accelerated maturation we decided to instrumentality successful the existent play a much balanced attack betwixt maturation and profitability,” Assia said. “As a result, we made a hard determination to chopped our workforce successful bid to guarantee semipermanent sustainable growth.”
• Etoro was founded successful 2007 by David Ring, Ronen Assia, and Yoni Assia and it provides traders with entree to cryptocurrencies, commodities, indices, and stocks. To date, Etoro has raised $322.7 cardinal from investors and has made 3 acquisitions.
• While the institution is shedding its unit by 6%, Etoro has besides decided to halt the SPAC merger it planned with the blank-check institution Fintech Acquisition Corp (NASDAQ: FTCV). Etoro had planned to person an archetypal nationalist offering (IPO) via the SPAC woody but present plans to rise funds privately.
• Allegedly, Etoro is already focused connected obtaining backstage backing for $800 cardinal to $1 cardinal and an wide valuation of astir $5 billion. Prior to canceling the SPAC deal, it was estimated that Etoro’s valuation would beryllium betwixt $8.8 cardinal to $10.3 billion.

• Since the SPAC merger termination was mutually agreed upon, neither enactment has to wage a termination fee.
• Etoro’s Assia noted that the institution is assured that the Israeli tech radical volition spot continued growth. “We stay assured successful our semipermanent maturation strategy and excited for the aboriginal of Etoro,” Assia said successful a statement.
• Meanwhile, Fintech Acquisition Corp’s banal jumped this week aft the news. FTCV is 0.10% higher than the time prior, and is presently exchanging hands for $9.86 per share.
• Etoro’s layoffs travel Verbit reducing its staff by 10% aft noting it volition laic disconnected 80 employees from the U.S. and 30 from Israel. Furthermore, galore crypto companies person laid disconnected workers including firms similar Gemini, Bullish, Robinhood, Bitso, Crypto.com, 2TM, Buenbit, and Coinbase.

What bash you deliberation astir Etoro’s determination to chopped unit and cancel the SPAC deal? Let america cognize what you deliberation astir this taxable successful the comments conception below.