The value of major cryptocurrencies has plunged drastically recently due to growing inflation and weakening demand, resulting in widespread layoffs and hiring freezes at crypto-focused businesses.
Cryptocurrency prices have been sliding in lockstep with the more significant market decline, leaving crypto firms, lenders, and traders in the lurch.
For the first time since January 2021, the value of the cryptocurrency market fell below $1 trillion, reaching $926 billion, according to the data portal CoinMarketCap.
Why Is crypto Falling?
With the cryptocurrency markets plunging, the following companies have announced layoffs:
Coinbase’s founders and CEO Brian Armstrong stated in a blog post on June 14 that the company would be laying off about 18% of its employees.
In a blog post, Armstrong explained the drop as a result of economic conditions and the threat of another “crypto winter.” He went on to say, “We grew too soon.”
Another crypto lending platform, BlockFi, said on June 13 that it would be laying off roughly 20% of its staff.
It appears to be a case of too much expansion, according to CEO Zac Prince’s Twitter statement. BlockFi presently employs around 850 people, compared to 150 at the end of 2020.
We’ve been cutting expenditures across the board to get to profitability, including: – cutting marketing spending – eliminating non-essential vendors – lowering executive salaries for myself, Flori, and other executives – slowing staff growth, and reducing our team size
According to Moneycontrol, On June 11, Crypto.com reported that 5% of its employees, or around 260 individuals, would be laid off. According to a tweet from Crypto.com CEO Kris Marszalek, the adjustments will allow him to “stay focused on executing on our goal and optimizing for profitability while doing so.”
That involves making painful but necessary decisions to maintain long-term success by reducing our corporate workforce by around 260 people, or 5%.
