Crypto market slump leads to layoffs across firms

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NEW DELHI (CoinChapter.com) — The LUNA/UST-led market crash that wiped nearly half a trillion dollars off the sector’s market cap continues to haunt the crypto circles.

The market rout led to downsizing across major names in the crypto markets. Cryptocurrency exchange Gemini became the latest to join the growing list of crypto firms that have had to lay off staff or freeze hiring recently.

Tyler and Cameron Winklevoss, the ‘first bitcoin billionaires‘ and founders of Gemini, released a memo on Thursday. Gemini will reportedly lay off 10% of its employees amid the ongoing crypto bear market. The move is a first for the U.S.-based cryptocurrency exchange and custodian.

The Winklevoss twins stated that the cryptocurrency industry is in a “contraction phase” that investors often refer to as “crypto winter.”

The term refers to a cyclical crypto market bearish trend where token prices might remain depressed for months. The previous crypto winter, in 2018, also saw a rash of downsizing across the industry.

Also Read: Top performing cryptocurrencies in May 2022.

In addition, the twins noted that the “current macroeconomic and geopolitical turmoil” has added further bearish bias to the markets. Gemini plans to focus on products that are “critical to their mission.”

The total of Gemini employees is unclear, but LinkedIn pegs the number somewhere between 501-1000 employees. As a result, a 10% layoff might bring bad news for at least 50-100 people.

However, Venture capitalists continue to pump money into crypto markets. For example, Andreessen Horowitz broke records last week as they announced a $4.5 billion crypto-centered fund. Additionally, Binance’s VC arm raised a $500 million crypto fund.

Gemini Not The First

In May, Coinbase announced its plans to slow down its hiring process and assess its headcount. The firm stated that it must focus on some of its “highest-priority business goals.”

Latin American crypto exchange Bitso laid off 80 employees on May 26 last week. The company stated that its long-term business strategy shaped its decision and its commitment to support its customers.

Also Read: The anti-crypto lobby is gaining momentum in Washington.

In addition, another crypto exchange BitMEX laid off 75 employees to streamline its business this year.

Meanwhile, in Apr, Robinhood also announced layoffs to the tune of 9% of its full-time employees. Although not necessarily a crypto firm, the discount brokerage has its crypto division. As a result, it seems the crypto market price crash affected Robinhood.

Robinhood CEO Vlad Tenev said that the rapid increase in the number of employees “led to some duplicate roles and job functions.”

[…] making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers.

Robinhood CEO Vlad Tenev wrote in a blog post

However, some firms continue to hire, indicating certain investors remain confident, though the wider market remains bearish in its sentiment.

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