Rain Financial Inc., a Bahrain-based digital asset exchange, is laying off hundreds of employees, according to a Bloomberg report.

Citing people familiar with the matter who asked not to be identified, the report notes that the company has communicated with affected employees. According to the sources, the exchange will reduce a significant portion of its workforce as Rain currently has around 400 employees.

The Coinbase-backed company cites the persistent price drop in the digital asset market. In a statement, Joseph Dallago, co-founder and CEO of Rain, noted that industry volatility has resulted in “unfortunate changes”.

“The volatility in the industry has made it difficult to plan properly, leading to the unfortunate changes we had to make today,” Dallago said.

Meanwhile, this is the second time Rain, one of the largest exchanges in the Middle East and North Africa (MENA) region, has downsized this year. In June, the exchange laid off an undisclosed number of employees.

“As cryptocurrencies and global markets continue to slow, this has, in turn, impacted businesses around the world. We had to make tough decisions to be able to get through this period of uncertainty and we can confirm that we have reduced our Rain workforce,” Dallago said at the time.

More jobs at digital asset companies are at stake as the market slowdown continues

Rain Financial was not the only company to embark on the second round of layoffs. Previously, US-based exchanges Gemini and Crypto.com showed the door to the second batch of their employees by saying they were cutting costs in preparation for a possible prolonged bear market.

In the case of Gemini, owned by the Winklevoss twins, the exchange cut its employees by another 7% after a previous cut of 10%. However, according to data from CryptoPresales, an ICO tracking resource, Coinbase (NASDAQ: COIN) still holds the record for the most layoffs.

The exchange has laid off about 1,100 employees so far this year. Bybit, Huobi and Crypto.com follow Coinbase. Collectively, digital asset companies laid off more than 5,000 employees, with June being the month with the most layoff activity.

With the global digital asset market capitalization below $1 trillion, well below its all-time high of around $3 trillion, more digital asset companies may continue to succumb to financial pressure.

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