THE CURRENT SITUATION ON THE CRYPTOMARKET IS NOT MAKING THINGS EASY FOR CRYPTO EXCHANGES!
Due to the worldwide economic crisis, leading cryptocurrency exchange, Blockchain.com, has let go 25% of its personnel, or roughly 150 employees.
According to CoinDesk, the company that trades digital currencies has announced that it will close its headquarters in Argentina and end its global expansion plans.
According to the cryptocurrency site, people who left will receive severance pay that might last between four and twelve weeks.
The decision to reduce the personnel was made in light of “severe bear market circumstances and the need to absorb financial losses.” According to the company, which recently announced a $270 million shortfall resulting from lending from the now-defunct hedge fund Three Arrows Capital.
Nearly 44% of the fired workers are from Argentina, 26% from the US, 16% from the UK, and the rest are from other nations.
Additionally, Blockchain.com is scaling back its institutional lending division, stopping all mergers and acquisitions, and pausing its plans to develop the gaming and non-fungible token (NFT) industry.
Several cryptocurrency exchanges and lending platforms have recently reduced their workforces.
Due to “turbulent market conditions,” the crypto exchange Gemini fired the second group of employees earlier this week. Adding to the approximately 10% of personnel it had previously let go. More layoffs at Gemini are probably coming in the upcoming rounds.
The co-founder and CEO of non-fungible token (NFT) marketplace OpenSea, Devin Finzer, stated last week that the platform is laying off around 20% of its workforce.
Amid turbulent market conditions, the cryptocurrency lending firm Celsius Network, which recently let go of 150 staff, has filed for bankruptcy in the US.
Popular cryptocurrency tokens like Bitcoin and Ethereum, which had just reached record highs, have since fallen by roughly 70%, contributing to the bankruptcy. In addition, Vauld, a cryptocurrency exchange, cut its staff by around 30% last month. Since then, all activity on its site has been suspended.