Crypto Lending Company Blockfi Cuts Staff by 20% – The crypto economy slipped below the $1 trillion mark on June 13, indicating that digital currency values aren’t as hot as they once were. During the last 24 hours, the entire crypto economy has lost more than 14% of its USD value. Cryptocurrency values have been slowly declining for weeks, and Monday’s market crash was particularly brutal.
On Monday, the most popular crypto asset, bitcoin (BTC), fell to a low of $22,600, while a slew of other digital assets suffered even worse losses. Digital currency companies have begun cutting off employees in the last few weeks of the crypto economy’s bear market decline.
Also Read: Five South Korean Crypto Exchanges Respond to Litecoin MWEB Upgrade by Delisting the Coin
Blockfi joined the wave of companies laying off employees on June 13, announcing that around 20% of its workforce would be laid off. “At Blockfi, we’ve had a lot of terrible days in the past, but today is definitely the hardest,” the co-founders wrote.
“The drastic shift in macroeconomic conditions around the world has touched us, as it has affected many others in the tech industry.” We are in the heartbreaking situation of having to cut our workforce today. This is not a decision we make lightly, and it is one that deeply saddens us.”
The message from Prince and Marquez also includes the following:
“We’re reducing our personnel by about 20%, and this will affect every team at the company. Market conditions that have had a detrimental influence on our growth rate, as well as a thorough review of our strategic priorities, prompted our decision.”
Bitso recently announced layoffs, and Buenbit has also reduced its workforce. Coinbase also reported that it had to “rescind a number of accepted offers,” while Gemini reduced its workforce by 10%. Rain Financial, a cryptocurrency company, and 2TM, a Latin American crypto exchange, have both reduced their workforces.
The Blockfi co-founders stated on Monday that the decision was difficult for the company’s management. “Today is a difficult day for Blockfi, but it is even more difficult for the staff with whom we must part ways,” the blog post states. “We’re doing everything we can to treat all of our affected coworkers with the empathy and compassion they deserve.”
Also Read: Huobi Launches Blockchain and Web3 Investment Arm Ivy Blocks
Despite the setback, Blockfi’s co-founders expressed confidence that the company will survive for a long time. “We are unwavering in our resolve to guarantee Blockfi remains here for the long haul,” the co-founders added, “for our remaining 600+ workers and our clients, partners, and stakeholders who have supported us internationally.”
