Menai Financial Group, a crypto-focused financial services firm, have announced their decision to shutter their market making business in London and Tokyo. The firm remains optimistic about the potential of blockchain technology and has shifted their focus towards developing their asset management business. The closure may result in numerous job losses, and Menai is not the only firm to suffer during this so called ‘crypto-winter’ – many industry players have been cutting jobs in the last year.

Menai have been exploring the potential of blockchain technology since they partnered with Index provider MSCI to launch their digital asset indices in November of 2019. The index follows the performance of the largest digital assets by market capitalization, and other digital assets according to proof-of-work consensus mechanisms, as well as smart contracts. The firm’s passion for blockchain technology is important in understanding why they have decided to part-ways with their market making business, as they continue to put resources into growing this developing area.

As a result of Menai’s decision, there may be a number of employees who need to find alternatives or redirect their careers. Sadly, this isn’t an uncommon problem due to the ongoing crypto winter, which has seen drastic dips in the prices of many digital assets throughout 2019. Coindesk reported that as of December 9 last year, more than 26,702 people had lost their jobs due to the crypto winter. As such, it is essential for those affected to act quickly and endeavour to develop new skills that allow them to take part in development of the growing blockchain technology.

It is clear that the winter will lead to major changes in the cryptocurrency sector, however Menai’s decision to pivot away from its market making business and continue its pursuit of blockchain exploration shows that the signs of a shift towards better times are already evident. Menai are entering a new era, one in which they are better equipped to take part in the new opportunities presented by the blockchain technology.



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