According to comments from the exchange’s administration, the staffing cuts are being described as a restructuring exercise aimed at improving management and eliminating redundant positions. However, according to media reports citing former employees of the stock exchange, the layoffs were the result of a significant reduction in the flow of funds needed to support the company’s operations. For example, the remaining workers not only had their workloads increased, but their wages were also cut.
Analyzing the reasons for the financial difficulties of the African cryptocurrency exchange, journalists identified several key areas that could have had a negative impact on its business processes. First, according to officially unconfirmed reports, Mara was significantly affected by the collapse of the cryptocurrency exchange FTX. However, the administration did not disclose the amount of damage incurred.
The next negative factor was an ill-conceived and overblown marketing program of the crypto-exchange, which is inconsistent with the level of its operating income. In an effort to expand its presence and influence on the continent, Mara hired exchange representatives throughout Africa. According to sources inside the company, Mara has attracted student brand representatives on college campuses in most African countries, and has generously sponsored influencers in the crypto space.
In May, the Financial Sector Supervisory Authority of South Africa (FSCA) introduced a new licensing regime that requires cryptocurrency companies to be licensed to operate in the country within six months, starting June 1.<br