Coinhouse halts its Web3 and metaverse activities

Friday, October 13, 2023

The French exchange platform had recently diversified into Web3 project support (notably NFT collection). But due to a lack of demand, it has decided to cease this activity and to let go of around ten of its employees, representing 15% of its workforce.

These are not easy times for France's leading crypto companies. Ten days after Ledger, it's Coinhouse's turn to cut back.

The former "House of Bitcoin" has decided to axe its Web3 and metaverse-related business, and to shed some of its staff.

According to Mindfintech, which first revealed the information, Coinhouse would like to shed 40% of its workforce. A figure denied by the company's CEO, Nicolas Louvet, who said that this concerned 15% of the company's workforce, or around ten people (out of 70).

Diversification strategy

Coinhouse's Web3 and metavers business was part of its strategy to diversify beyond its historical business of buying and selling cryptocurrencies.

For almost a year, the platform has been helping companies launch their collection of NFTs. In particular, it supports them on the sales and marketing side, as well as on custody services.

The problem is that with the downturn in the markets, projects have not followed. "There's too little traction," confirms Nicolas Louvet, who stresses that Coinhouse will refocus on its historical business.

As we revealed, Coinhouse raised €40 million in 2022, notably from private bank ODDO BHF. Part of these funds has been absorbed by losses linked to Genesis. "We still have cash, we have visibility, but we don't know how long the Bear market will last," explains Nicolas Louvet.

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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