Layoffs Spread Across the Blockchain Industry as Bear Market Cycle Impacts Crypto Firms – The bear market cycle is taking its toll on the crypto industry’s workforce, as digital currency prices have dropped dramatically in value over the last few months.
The Winklevoss brothers, Gemini’s co-founders, announced on June 2 that the company would lay off 10% of its workforce. Rain Financial, one of the Middle East’s leading digital currency exchanges, announced dozens of layoffs the same day. Rain’s CEO stated that the slowing of cryptocurrency markets has “affected businesses all across the world.”
Also Read: Central Bank of Armenia Urged to Regulate Cryptocurrencies
7 Crypto Firms Forced to Reduce Workforce Numbers
As a result of the crypto bear market downturn, 2022 is trying to imitate the latter half of 2018, with crypto companies throughout the world laying off employees. The layoffs began in April, when Robinhood revealed that it would have to lay off approximately 9% of its workers.
Bitso let off 80 staff in May owing to the crypto bear market, according to reports. Not long after Bitso’s statement, Coinbase-backed 2TM, Latin America’s largest crypto exchange, announced it was cutting off around 12% of its workforce.
“The circumstances necessitated adjustments beyond the lowering of operating expenses, necessitating the dismissal of some of our personnel.” “To honor the legacy of each employee that helped us get here, we followed a process led by transparency and respect,” 2TM explained.
Cameron and Tyler Winklevoss announced in a blog post that 10% of Gemini’s employees would be laid off. On June 2, the Gemini co-founder wrote, “We are writing to update you on a difficult choice that will influence a number of you and the overall size of our team.” “The crypto revolution has already begun, and its impact will continue to be tremendous — but its trajectory has been far from steady or expected,” the blog post added.
During the crypto market downturn, Coinbase revealed that it was slowing down the hiring process. Coinbase later claimed that it had to “rescind a number of accepted offers,” following the report. Furthermore, Rain Financial Inc., a Coinbase-backed firm, announced that it had to lay off dozens of staff. Rain’s CEO and co-founder Joseph Dallago attributed the decision to the crypto bear market.
“As cryptocurrency and global markets continue to stall, this has hurt businesses around the world,” Dallago told Bloomberg author Ben Bartenstein in a statement. “We have had to make difficult decisions in order to navigate through this moment of uncertainty, and we can confirm that our Rain workforce has been downsized.”
On May 23, Buenbit’s CEO revealed that the company had opted to decrease its workforce. “We are going through a time of worldwide review after the technology industry’s exponential growth in 2021,” Federico Ogue remarked. “In light of this new situation, we have chosen to downsize our workforce and put our expansion plans on hold in order to focus solely on operations in the countries where we now operate and to maintain a self-sustaining and efficient structure.”
Also Read: Central Bank Digital Currencies Could Kill Cryptocurrencies – RBI Official
Although no one knows how long the downturn will last, layoffs are a solid sign of slowing growth and the beginning of a bear market cycle. Following the bull market in 2017, the report reveals multiple crypto companies laying off employees due to the bear market.
When the bear market ended in 2020, however, the crypto business experienced massive recruiting sprees, and employers needed assistance to keep up with demand.
While many businesses have either paused hiring or laid off employees, the digital currency market still has a number of openings. Despite the crypto collapse, Fidelity announced last week that it intends to expand its workforce.