There’s no denying that the crypto market has been gripped by immense bearish pressure over the past year, as made evident by the fact that the total
There’s no denying that the crypto market has been gripped by immense bearish pressure over the past year, as made evident by the fact that the total capitalization of this sector has continued to hover below the $900 billion mark for most of the year after having scaled up to an all-time high of $3 trillion in 2021.
These conditions have been characterized by many companies facing insolvency, as well as many of the world’s top exchanges laying off their staff in recent months. Moreover, the recent FTX debacle has set in motion a contagion effect that has continued to have a major effect on several crypto platforms, dissuading newer investors from entering the space in the process.
Since Q2 2022, a host of prominent crypto entities (including many digital asset trading and lending platforms) such as Terra, Celsius, Bbl, Voyager Digital, Vauld, FTX, Alameda Research and BlockFi, among others, have either collapsed entirely or filed for bankruptcy, thus suggesting more incoming pain for the industry.
Layoffs continue en masse
As the market continues to be faced with major headwinds, several crypto companies, especially exchanges, have had to let go of their workforce. It is estimated that over the first eleven months of the year alone, the industry has witnessed over 26,000 layoffs.
In November, leading cryptocurrency trading platform Coinbase announced a fresh round of job cuts, with the firm reportedly firing more than 60 employees from its recruiting and institutional onboarding teams. What’s more, is that earlier this year, the company laid off 18% of its staff (approximately 1,100 oppositions), with company CEO Brian Armstrong admitting that he had hired more personnel than were required to begin with.
Similarly, on Nov. 30, cryptocurrency exchange Kraken announced that it was going to be parting ways with 30% of its global workforce — which works out to over 1,000 employees — amid the ongoing market downturn. A spokesperson for the firm noted in a blog post:
“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups. We responded by slowing hiring efforts and avoiding large marketing commitments. Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand.”
It is worth noting that back in June, the company had stated that it was looking to expand and grow its operations, primarily by adding 500 experienced individuals (laid off from other firms) to its roster.
Recent: Bitcoin, Sango Coin and the Central African Republic
Lastly, the aforementioned layoffs haven’t been confined to just American crypto firms, with prominent Australian digital asset exchange Swyftx announcing recently that it had cut 90 jobs. Prior to this development, the company had excused 260 employees, effectively bringing down its total workforce by 35%. Similarly, popular cryptocurrency exchange Lemon Cash, which has large-scale operations in Argentina and Brazil, announced a 38% cut in its workforce a month ago, citing the lack of a clear recovery horizon.
Other similar instances worth noting
Akin to the developments noted above, crypto exchange Bybit too announced that it was going to be initiating a fresh round of job cuts (estimated to be around 250 positions). To this point, company CEO Ben Zhou revealed on Twitter that the firm is currently trying to manage its expenses by refocusing its day-to-day operations, especially with a deepening bear market. According to Zhou, this latest decision will have a direct effect on 30% of his staff, adding:
“Planned downsizing will be across the board. We are all saddened by the fact this reorganization will impact many of our dear Bybuddies and some of our oldest friends.”
Unchained Capital, a Bitcoin (BTC) financial services firm, let go of nearly 630 people in November, effectively reducing its manpower by 15%. In a recent post pertaining to the job cuts, company co-founder and CEO Joe Kelly noted that the layoffs did not have anything to do with the recent FTX saga, stating, “Funding for Bitcoin-backed loans has been materially constrained by recent market events.”
Digital asset and blockchain firm Galaxy Digital, helmed by popular investor Mike Novogratz, also plans on reducing its staff by at least 20% (nearly 170 employees) in order to focus on building for the future and maximizing shareholder value in the long run. It bears mentioning that since the turn of the year, Galaxy’s share value has depleted by a staggering 80%.
Venture capital company focusing on the digital currency market Digital Currency Group (DCG) also downsized by nearly 13% recently, letting go of 66 employees in the process. The crypto conglomerate, which was founded by billionaire Barry Silbert, said it is looking to restructure its finances while also promoting several senior…
cointelegraph.com