Qredo’s Management Overhaul and Leadership Changes
Alongside Foy, Qredo’s chief operating officer, Josh Goodbody, has also left the company, to be replaced by Becky Mifsud, the company’s chief people officer. Goodbody commented on the importance of establishing a foundation for the Qredo Network to drive adoption and decentralization. The Qredo Foundation will play a pivotal role in promoting the utility of the QRDO token and supporting community and ecosystem efforts.
As part of the management overhaul, Qredo has appointed two new board members, Thomas Sidney “Tad” Smith, Jr., and Raizada Bhavin Vaid. Simultaneously, Stan Miroshnik, co-founder and partner at 10T Holdings and TenSquared Capital, has left the Qredo board.
In order to sustain its operations, Qredo has obtained debt financing in a deal led by 10T Holdings. However, the company declined an equity deal as it would have required issuing new shares and thereby diluted the ownership of existing shareholders. Financial pressure forced Qredo to implement cost-cutting measures, including two rounds of job cuts, reducing around 50 positions, to lower annual expenses by 35%. The closure of Ankex, a hybrid exchange project, also occurred due to these financial constraints.
Qredo’s Challenging Financial Situation
Qredo faced financial difficulties due to its ambitious expansion plans and the bearish market conditions. Despite striving to rival prominent custodial products such as Fireblocks, BitGo, and Copper, Qredo struggled to gain significant traction in a market with reduced activity. The company aims to address these challenges with its reduced workforce and debt financing. The next steps for Qredo involve evaluating options for 2024, such as continued product development and fundraising or potential acquisition.