Digital Assets: BlockFi And Crypto.com Forced To Cut Jobs Amidst Crypto Market Crash
Earlier this month, crypto exchange Gemini Trust Co. said it plans to slash 10% of its staff.
In more signs of pain in the crypto assets market, already in the throes of a massive downtrend, two major players have announced job reductions. While crypto lending platform BlockFi Inc. said Monday that it will slash staff count by a fifth, digital currency exchange Crypto.com announced Friday that it was cutting jobs by 5%. Meanwhile, bitcoin, the leading cryptocurrency, is currently trading at $22,592, its lowest price since December 2020. (Bloomberg)
Earlier this month, Coinbase (NASDAQ: COIN) stunned the markets by withdrawing some job offers and freezing hiring indefinitely. Gemini, the crypto exchange founded by the Winklevoss Twins, laid off 10% of staff, blaming the “crypto winter” as well as macroeconomic and geopolitical turmoil for the decision.
Meanwhile the crypto market was dealt a double whammy by the implosion of the TerraUSD stablecoin in May, and this week, a shock announcement by crypto lender Celsius that barred all withdrawals, Swap, and transfers.
BlockFi: “Market Conditions”
Celsius attributed the reason for the ban to “extreme market conditions.”
Blockfi blamed their move to cut jobs on “market conditions that have had a negative impact on our growth rate.” Singapore-headquartered Crypto.com said it was forced to reduce headcount to optimize for profitability and sustainable growth during a market downturn.
In an interview with CNBC Monday, Skybridge Capital founder Anthony Scaramucci commented: “We are in a bloodbath. This is my eighth bear market. I expect to survive this one as well.”
His advice to investors on bear markets: “If you stay disciplined during those periods of time, you got yourself very wealthy, and I think that’s the message for investors.”
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