- 2000 job types at the centre Crypto layoffs in 2023.
- Blockchain.com is letting go of 28% of its workforce, or about 110 employees.
- Ethereum software company ConsenSys confirmed that it’s eliminating 96 positions, representing 11% of the crypto firm’s total workforce.
Harare - Around 2000 job types continue to be lost due to Crypto layoffs in 2023. Last week, one of the top American bitcoin exchange platforms, Coinbase Global, suggested that there might be more layoffs on the horizon. In the first two months of 2023, the digital asset sector lost more than 2000 jobs as businesses continued to make cuts despite a slight recovery in cryptocurrency prices.
After laying off 20% of its personnel between January 23 to January 31, US bitcoin exchange Coinbase Worldwide Inc. this week hinted that there might be more job losses in the works. In the previous two months, employment losses have also been announced at other trading platforms like Crypto.com, Huobi Global, Gemini, and Luno. Retail trading, which is essential to exchange revenue, has been sluggish in recovery since a wave of failures and scandals ravaged the industry last year. Because of this and recessionary anxieties, many economic actors have turned to other " haven" assets, and the volatility in cryptocurrencies no longer makes sense to risk-averse investors.
Many layoffs have also occurred in other categories of cryptocurrency enterprises. Early in February, Chainalysis, a startup that tracks transactions involving digital assets and counts Singapore's GIC among its backers, announced employment cutbacks. Messari, a researcher funded by Brevan Howard, reportedly reduced its staff by 15% as well, according to CoinDesk.
Here are some of the crypto job cuts announced or reported so far in 2023:
In a letter shared by Roham Gharegozlou, founder and chief executive officer of Dapper Labs, the company behind the National Basketball Association’s Top Shot NFTs said that it is laying off 20% of its workforce, as it goes through a restructure to improve “focus and efficiency.”
Blockchain analytics firm Elliptic is laying off 20 employees or about 10% of its staff, DL News has reported.
The crypto data and exchange platform has cut 15% of its workforce as part of a restructuring effort, according to CoinDesk.
The Australia-based blockchain-gaming firm has made layoffs affecting 11% of staff in 2023, according to The Sydney Morning Herald.
The main operator of Polygon blockchain announced that it has let go of around 100 employees, or 20% of its workforce, as part of a consolidation of business units.
One of the oldest market makers in crypto eliminated about 20 positions in January, the second round of job cuts at the firm.
The nonfungible token marketplace announced that it had cut 22 roles as part of a “company-wide restructuring.”
The company behind the decentralized file storage network Filecoin announced in a blog post that it will cut 89 roles across several teams, or 21% of its staff.
Crypto exchange Bittrex has laid off more than 80 people, as reported by CoinDesk.
The company known for its crypto transaction tracking services said it made layoffs affecting less than 5% of its 900 employees.
The digital-asset lender is shedding 10% of its 300-strong workforce.
The crypto exchange owned by Digital Currency Group announced that it is reducing about 35% of its workforce.
Bitcoin Suisse AG
The digital-asset investment firm said it has laid off some positions, but declined to give an exact number. A spokesperson said it was “substantially below” the industry average of about 30% of the headcount. The organization has streamlined its management: Sven Ramspott, the chief risk officer, now doubles as the finance head, replacing Philipp Vonmoos, who is departing the organization after five years.
Blockchain.com is letting go of 28% of its workforce, or about 110 employees. It cut about 150 roles last year. After the layoffs, the company’s headcount will stand at 280, up from 160 at the beginning of 2021.
On Jan. 10, Coinbase announced a reduction of about 950 employees or 20% of its workforce. It’s closing most of its operations in Japan and shutting down several projects. Last June, Coinbase laid off 18% of its workforce, the equivalent of roughly 1,100 employees, and it eliminated another 60 in November.
Ethereum software company ConsenSys confirmed that it’s eliminating 96 positions, representing 11% of the crypto firm’s total workforce.
Crypto.com said it laid off about 20% of its global workforce. That’s on top of layoffs in the middle of last year. Crypto.com declined to provide the specific number of jobs eliminated in the latest round.
Gemini Trust Co. eliminated another 10% of its workforce. The firm remains pressured by a months-long crypto slump.
Brokerage Genesis Global Trading Inc. laid off more than 60 employees, or about 30% of its workforce, on Jan. 5. Last August, the company eliminated 20% of its workforce.
The digital-assets platform backed by Fidelity International is cutting costs by about a third, including a “headcount reduction,” according to Hugh Madden, chief executive officer of OSL’s parent company BC Technology Group.
Digital asset manager Osprey Funds has laid off 15 employees and is currently operating with fewer than 10 employees, CryptoDaily reported.
Crypto services company Prime Trust laid off about one-third of its staff late last month, largely in communications and compliance, CoinDesk reported.
Crypto-friendly bank Silvergate Capital Corp. said in January it’s reducing its headcount by about 200 people.
Nonfungible token marketplace SuperRare reduced staff by about 30% in January, according to a tweet from Chief Executive Officer John Crain.
Crypto exchange Huobi said it’s planning to cut 20% of its workforce, according to a statement in January. The company has about 1,100 employees.
The perception of cryptocurrencies as safe havens has allowed investors to increase the level of risk in their portfolios for a while. It seems possible that owning Bitcoins and other cryptocurrencies constituted a larger wager on the same central bank-driven bubble that some people are trying to avoid. Every time the price of Bitcoin reached a new high, there were fresh predictions that it would replace gold as the premier haven investment of the modern era. Sadly, given the layoffs occurring in the bitcoin sector, it can be said that the industry is not currently very successful since businesses are struggling to pay their staff due to a decline in consumer base.
Nonetheless, it cannot be denied that Bitcoin is fundamentally a speculative investment in cutting-edge technology, notably the blockchain. Another factor that has led to several scams and the misuse of cash through cryptocurrencies is the inability of governments to directly supervise them. As a result, individuals are concerned about using cryptocurrencies.
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