This year, the bears exhibited a gruesome presence on the cryptocurrency market. The Bitcoin [BTC] market as a whole fell to an incomprehensible low of $20,000. While panic and fear dominated the market, every portfolio experienced losses. In addition to these losses, the bear market cost some individuals their livelihoods.
The crypto-verse began as a prominent industry that not only posed as a relevant investment arena, but also assisted numerous individuals in establishing their careers. While some became full-time traders and left their 9-to-5 jobs behind, a few others desired to assist exchanges in constructing the monumental industry. With the current bear market, however, things have taken a very disruptive turn.
Due to the bears’ dominance over the crypto market, exchanges were forced to lay off a significant number of employees. This significant reduction in personnel further agitated the market.
Here is a list of each cryptocurrency exchange that laid off employees during the bear market.
Years ago, the Winklevoss twins entered the cryptocurrency market with their own exchange, Gemini. While this exchange has emerged as a market leader, it appears to have undertaken some cost-cutting measures. The exchange appeared to have adopted this entire trend by laying off 10% of its workforce.
Cameron and Tyler Winklevoss sent a message to their employees explaining that “volatile market conditions that are expected to persist for some time” was the reason for the company’s decision.
This year, Crypto.com made it big. With its Super Bowl ad and celebrity endorsements, the cryptocurrency exchange was at the top of its game. This level of achievement gave its employees a sense of security. However, the bears did not spare this conversation either.
In a lengthy Twitter thread, Kris Marszalek, the CEO of Crypto.com, announced the layoff of 260 employees, or 5% of the company’s workforce, he added.
This Latin American exchange began its shooting spree in the month of May. The cryptocurrency exchange had 700 workers. However, this list was shortened after 80 employees were terminated.
Bitso has a significant presence in Latin America, with a staggering four million users in Mexico, Colombia, Argentina, and Brazil. The exchange issued a statement stating,
Our decisions regarding the employees of our company are based on our long-term business strategy and are made to support our customers and corporate strategy.
After allegedly violating CFTC regulations, BitMEX generated a great deal of buzz. Now, in line with its competitors, BitMEX became one of the first exchanges to lay off workers. In April, the cryptocurrency exchange let go of 75 employees.
The cryptocurrency exchange disclosed that it would continue normal operations while streamlining the next phase of the company.
This year, the prominent trading platform Robinhood expanded its cryptocurrency portfolio. The anticipated addition of Shiba Inu [SHIB] was anticipated to increase the platform’s overall adoption. In contrast, the crypto bear market decided to lay off 9 percent of its full-time workforce.
Vlad Tenev, the chief executive officer of Robinhood, wrote,
“To our departing colleagues, we appreciate everything you’ve done to support Robinhood and our mission, and we wish you the best in the future. We will begin contacting each of you individually to discuss the next steps, including the substantial support we will provide regarding separation packages, healthcare, and job search assistance.”
Coinbase is unquestionably one of the leading cryptocurrency exchanges on the market. In accordance with the bearish trend, the exchange has decided to lay off 18% of its workforce by the second quarter of 2022.
Brian Armstrong, the CEO of Coinbase, wrote a lengthy blog post in which he thanked his former employees and revealed the path ahead.
Along with Coinbase, BlockFi announced earlier this week that it would lay off 170 employees, or 20% of its workforce, from its platform.
The CEO of BlockFi, Zac Prince, stated in a Twitter thread that it was a difficult decision.
This UAE-based cryptocurrency exchange is rumoured to have drastically reduced its workforce. However, the figures were not disclosed.
Joseph Dallago, co-founder and CEO of the platform, disclosed that market stagnation had affected the company. He added,
“As cryptocurrencies and global markets continue to decelerate, this has had a ripple effect on businesses around the world. We had to make difficult choices in order to navigate this period of uncertainty, and we can confirm that we have reduced our Rain workforce.”
Although the crypto-verse has been in a slump for some time, the community appears to have lost its sense of job security. As exchanges such as Binance continue to hire personnel, the community awaits any indication that a bull market is approaching.