Credo QRDO
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Co-founder and CEO Anthony Foy was removed from the company following an investor-led management shakeup, and Qredo also secured debt financing to sustain operations, two sources with knowledge of the matter told The Block.
One of the two sources said Foy had been asked to leave for an overhaul led by 10T Holdings, a lead investor in Qredo’s Series A. Dan Tapiero’s 10T Holdings, as Qredo’s majority shareholder and board representative, had the authority to request a leadership change at the company, the sources said. Foy’s resignation was also disclosed in documents filed with Companies House, the UK’s corporate registration authority.
Foy, 64, was replaced by Duncan Payne-Shelley, 48, Qredo’s chief financial officer, two sources with knowledge of the matter said. Payne-Shelley’s LinkedIn profile has also been updated to show that he is now the CEO and CFO of Qredo.
“In light of recent organizational changes, I would like to thank Anthony for his leadership in recognizing that this is the right time for change,” Payne-Shelley told The Block. “We remain committed to advancing the Qredo platform, protocol, and tokens as we refocus on improving efficiency and our core products.”
Payne-Shelley added, “With strong investor support, we are focused on becoming the leading, secure, self-managed solution in the cryptocurrency space and continuing our path of innovation and excellence.”
A 10T Holdings spokeswoman declined to comment.
Qredo COO also leaves office and new board members join
In addition to Foy, Qredo’s chief operating officer, Josh Goodbody, also no longer works for the company and has been replaced by Becky Mifsud, the company’s chief human resources officer, according to one of the two sources. . Good Body announced his move to The Block, saying he had moved to the position of director of the Credo Foundation.
“Building the foundation of the Qredo Network is a sign of our continued commitment to adoption and decentralization,” Goodbody said. “This is especially important ahead of the launch of Fusionchain, the Cosmos-based upgrade of the Qredo network.”
The Qredo Foundation will focus on “promoting the utility of the Qredo token” while supporting community and ecosystem efforts to increase adoption of the Qredo network, Goodbody added.
Payne-Shelley confirmed that Goodbody “remains a director of the Qredo Foundation, where he is currently focused on his work”.
As part of its management shake-up, Qredo reportedly appointed two new board members in recent weeks: Thomas Sidney “Tad” Smith, Jr., former president and CEO of Sotheby’s, and Raizada Bhavin Vaid, head of 10T Holdings and 1RoundTable Partners. In the Companies House filings. Meanwhile, Stan Miroshnik, co-founder and partner of 10T Holdings and founder and managing partner of TenSquared Capital, has left Qredo’s board, according to the filing.
Qredo is debt-financed.
Last month, The Block reported that Qredo had just six months left on its runway and was seeking new funding and potential acquisitions. The company is currently seeking debt financing in a deal led by 10T Holdings to stay afloat, one of the two sources said. Sources said the company initially proposed a share deal, but Qredo rejected it because it would have required issuing new shares and diluting the ownership of existing shareholders. Details of the rejected equity deal and new debt financing are not yet known. Payne-Shelley would not comment on financing.
As The Block previously reported, Qredo has faced financial pressures and had to make job cuts twice. In September it cut about 50 positions, cutting annual costs by 35%, and in November it laid off 50% of its remaining staff.
Earlier this month, Qredo was also forced to shut down Ankex, a hybrid exchange project that launched in beta last September. This led to the departure of Michael Moro, former CEO of Genesis Global Capital, who was appointed to lead Ankex in April.
Where did Qredo’s Series A fund go?
Qredo was valued at $460 million when it announced in February 2022 that it had raised $80 million in a Series A round. But the company’s aggressive expansion and subsequent weak market led to a financial crisis, one of the two sources said. Qredo has pursued an aggressive strategy to compete with leading managed products such as Fireblocks, BitGo and Copper, which have raised large funds, the sources said. This included more spending on technology and rapidly expanding the team to more than 220 people at one point. But the bear market dampened market activity last year, and Qredo’s product struggled to gain sufficient traction.
Now, with fewer employees and debt financing, Qredo looks set to resolve its issues and decide on a course of action for 2024 – whether to continue product development and raise funds or sell, the people said.
Payne-Shelley did not comment on how the Series A proceeds would be utilized and what course of action it would take in 2024.
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