slashes headcount by 40 percent in push to cut costs

Web3 firm is also exploring a potential sale of business segments.

Toronto-based cryptocurrency and Web3 firm has reduced its headcount by approximately 40 percent and is considering the potential sale of parts of its business.

The company announced the layoffs in a statement released Wednesday, noting the layoffs come as looks to “better withstand current market conditions.” In addition to reducing its headcount,’s board of directors have begun a review to assess where it can improve long-term shareholder and stakeholder value. says its cost-cutting measures have already eliminated approximately $1.6 million CAD from its operating overhead.

As part of that review, said it is considering “a full or a partial sale of business segments or [intellectual property] within those segments, a sale of the domain name portfolio, including, and/or a sale of the crypto inventory or other digital assets.” said it has established an independent committee to review potential future transactions.

“The last two years have been difficult for micro-cap stocks in the crypto sector,” CEO Andrew Kiguel said in a statement. “We have been successful in building innovative products and services for Web3 for ourselves and third parties. However, these projects require continued capital for [research and development] and marketing to scale them successfully and cover their associated overhead.” has also cancelled some of its services that were previously outsourced. This, in addition to its 40 percent staff reduction, has already eliminated approximately $1.6 million CAD from its operating overhead, according to the company. said it currently has $12.2 million USD in cash and crypto tokens based on its most recent quarterly earnings.

RELATED: Coinbase says it wants to be a long-term leader in Canada’s crypto market builds products and acquires businesses linked to crypto staking, the metaverse, and play-to-earn gaming. The company trades publicly on both Cboe Canada (formerly known as Neo Exchange) and the Frankfurt Stock Exchange.

One particular area of concern for is in its subsidiary business, Metaverse Group. In 2021, acquired a 50 percent stake in the company, which got its start renting “digital land” in the metaverse, including one plot it purchased for a staggering $2.4 million USD in crypto.

In June 2023, acquired the remaining interest in the company, but since the metaverse hype has waned in the last two years, said Metaverse Group’s focus has shifted to allowing clients to connect with consumers through 3D experiences.

“Management has been disappointed in [Metaverse Group’s] ability to generate revenue and scale,” said in its Wednesday statement. “Revenues in this segment have also been affected by cuts in marketing budgets of potential clients. As a result, we have determined to downsize this business to a level that corresponds with its revenues.”

RELATED:’s metaverse subsidiary acquires NFT minting platform CocoNFT’s subsidiaries also include Hulk Labs, a Web3 gaming company, and Helix World, which offers an ecommerce tool to allow for advertising within virtual gaming worlds. In addition to owning Web3 businesses, also manages an inventory of cryptocurrency, digital real estate, and a collection of crypto-related domain names.

Part of its review of the business is a potential sale of its domain name portfolio (including the domain), which management believes has “tremendous value.”

“CitiGPS predicts the tokenization of all physical and digital assets by the end of the decade is inevitable,” the company said. “As such, management believes that the opportunity to sell the domain name could provide substantial financial compensation to the company.”

Investment in Web3 has been declining since late 2021 as investors have grown wary about the volatile nature of the crypto market, which has experienced its own downturn in recent years. According to Crunchbase data, investment in Web3 startups fell for the seventh straight quarter during Q3 2023.

Feature image by Alesia Kozik via Pexels.

Isabelle Kirkwood

Isabelle Kirkwood

Isabelle is a Vancouver-based writer with 5+ years of experience in communications and journalism and a lifelong passion for telling stories. For over two years, she has reported on all sides of the Canadian startup ecosystem, from landmark venture deals to public policy, telling the stories of the founders putting Canadian tech on the map.

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