Kraken outlines the exchange’s focus amid downturn

Kraken, the leading cryptocurrency exchange, has recently downsized with a 30% reduction in its global workforce and the closure of its operations in Japan at the end of last year.

Despite the challenging market conditions, the company remains optimistic about its future.

In a recent interview, Kraken's head of strategy, Thomas Perfumo, spoke about the company's plans for 2023 and beyond.

According to Thomas, Kraken's decision to downsize the workforce was independent of any market events, such as the collapse of FTX. Instead, it was driven by a careful evaluation of the current macro and technological environment and the company's desire to narrow down its efforts and focus on areas where it can have the greatest impact on its long-term vision of accelerating the adoption of cryptocurrency.

Therefore, the company believes that it is in a strong financial position to take advantage of other firms' recent collapses and provide a safe and trusted experience for those interested in the crypto market. With its narrowed focus and strong financial position, Kraken aims to be a dominant player in the cryptocurrency space in the coming year.

When asked about innovation, Perfumo revealed that the company has recently launched a beta version of its new non-fungible token (NFT) platform. The platform aims to offer an accessible entry point for those new to the crypto market and looking to purchase NFTs but lack knowledge on how to manage the custody of their assets. The company is excited about the prospects of this new platform, as they believe NFTs will be a major part of the crypto market in the future. Besides, Kraken has recently updated its Pro interface, which has received positive feedback from clients and plans to roll out more user-friendly features for its customers.

Regarding global operations, Kraken serves over 190 countries and has a large client base. The company had briefly exited the Japanese market in 2018 when a licensing regime was introduced, and after securing the license, it reopened its operations. However, Perfume stated that the recent decision to close operations in Japan again is part of the company's global workforce reduction and that it focused on serving its larger global operations. The company did not rule out the possibility of re-entering the Japanese market later, but its focus now is serving clients in other countries.

Thomas Perfumo believes that retail investors will play a crucial role in shaping the future of the crypto industry. According to him, only a small portion of the global population has ever interacted with cryptocurrencies, and that number is expected to grow significantly over the next decade. He also highlights that although institutional investors provide much-needed liquidity and stability to the market, retail investors will drive adoption and innovation in the crypto space.

The crypto world is built on providing billions of people with internet-connected devices access to financial services and applications. Only a small portion of the global population has interacted with cryptocurrencies, but that number is expected to grow significantly over the next decade. 

Kraken’s head of strategy notes that as more people enter the crypto space, they are not just buying coins to sell them at a higher price but also using different services that crypto protocols offer. This trend is expected to continue, and he sees it as the foundation for the future growth of the crypto industry.

Thomas Perfumo also notes that the current growth of DeFi and NFT applications, which are seeing billions of dollars being collateralized, is a testament to the growing adoption and use of cryptocurrencies beyond speculative behavior.

The crypto industry faces several challenges in 2023, and rebuilding trust and confidence in the industry is at the top of the list. After the fall of Mt. Gox, people felt that the crypto industry was tarnished, which has had a lasting impact on the industry's perception. Kraken has been working hard to rebuild trust and confidence to provide a safe and welcoming environment for people to explore and adopt cryptocurrency.

In addition to rebuilding trust, the industry must also focus on providing exciting applications and use cases for clients to engage with. Whether through financial investments, staking, transfers of value, or the creation and exchange of NFTs, the goal is to provide a wide range of options for people to get involved with cryptocurrency.

Despite the challenges, the long-term vision of the crypto industry remains unchanged: mass adoption of cryptocurrency. Kraken is focused on this vision and is working hard to accelerate the adoption process by providing innovative solutions and building trust in the industry. By focusing on this long-term vision, the crypto industry can overcome its challenges and continue to grow and evolve in 2023 and beyond.

In conclusion, Kraken has a clear strategy to move forward, focusing on innovation and serving its global operations. Despite the recent downsizing, the company remains optimistic about the future of cryptocurrency. It is dedicated to making the experience of buying, selling, and storing cryptocurrency more intuitive and useful for its users.