Wave of layoffs in crypto companies

 Coinbase, the world's largest cryptocurrency exchange, announced a reduction of more than 1,000 employees while other companies also laid off about 20% of employees.

ccording to CNBC, this wave is happening mass

ively after the cryptocurrency price plummeted. The number of people who had to quit their jobs at Coinbase accounted for nearly a fifth of employees in the context of the market continuously losing its bottom. This exchange has about 5,000 full-time employees.

The company said it initially intended to stop hiring, but after two weeks of market volatility, it was forced to cut back. Earlier this year, the exchange had announced it would hire 2,000 more employees, but the plan went bankrupt.

Coinbase employees watch their company name displayed on a billboard in Times Square in April 2021. Photo: Reuters
Coinbase employees watch their company name displayed on a billboard in Times Square in April 2021. Photo: Reuters

Brian Armstrong, CEO of Coinbase, said: "The cost of personnel is too high in the volatile market. Despite our best efforts, we cannot bear any more in this context." The company says it doesn't even have financial benefits for employees who lose their jobs.

Coinbase isn't the only crypto company to reduce staff. On June 13, BlockFi, a cryptocurrency lending and trading platform, announced the layoff of 20% of its 850 employees. On Twitter, CEO Zac Prince said the cuts were due to "a sudden change in the market".

Previously, the company had a "rain" of recruitment at the end of 2020. When the market was active, their number of employees increased from 150 to more than 850. Now, BlockFi only has about 600 employees. Zac Prince said that, in addition to staffing, BlockFi is also looking to reduce marketing costs, eliminate unimportant suppliers, reduce wages and freeze hiring.

The wave took place not only in the US but also spread around the world. Crypto.com - the Singapore-based company said it will reduce 260 employees in early June, equivalent to 5% of staff. Many crypto companies like Gemini, Mercado Bitcoin, and Bitso have also laid off at least 10% of their employees.

Some people who were laid off said they had prepared psychologically before entering the market. In their heyday, they were paid handsomely, so despite the cuts, those in this field weren't too shocked. Many people believe that when the market stabilizes, they can still find a new job.

On June 14, the value of Bitcoin, Ethereum and many other cryptocurrencies fell sharply. Celsius, a cryptocurrency lending platform, has halted all withdrawals and transfers due to "extreme market conditions". Binance - the world's largest cryptocurrency exchange also stopped withdrawing BTC within three hours due to technical problems.

Kris Marszalek, CEO of Crypto.com, told the Los Angeles Times: "The next few years, when we look back at this period, we will see that the market has tried to overcome the 'door of death' to become better." .

Meanwhile, The Verge reports that crypto companies have had a massive hiring spree as the market is active and many have high expectations for blockchain technology. But so far, as growth has stalled, trillions of dollars have been wiped out of the market, NFT sales have fallen and major players in the industry are in trouble, a wave of layoffs has taken place on a large scale. is understandable.

Many traditional technology companies and even Big Tech are struggling at this stage. However, things in the crypto market can crash faster than usual. Most crypto companies attract customers with the promise of quick money. But when things change, their business model can disappear overnight.
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