According to our calculations, in the space of two months, more than 2,035 employees in the crypto ecosystem lost their jobs.
Since this weekend, the cryptocurrency market has been under new severe downward pressure, having already experienced a crypto-crash a month ago, with serious consequences for investors, but also for cryptocurrencies.
The latter, in fact, are finding it increasingly difficult to resist the shock and have announced numerous layoffs. According to our calculations, in the space of two months, more than 2,035 employees in the ecosystem lost their jobs. To justify the layoffs, all companies cited the impact of the cryptocurrency crash on their business.
Binance compared to other cryptocurrency exchanges
On Tuesday, the American giant Coinbase announced the dismissal of 18% of its employees, corresponding to 1,100 positions. The company wants to make sure it wants to “stay healthy” during the economic downturn, its boss Brian Armstrong said in a post. It must be said that the company has “grown very quickly” as she herself admits, going from 1,250 employees at the beginning of 2021 to over 4,900.
For its part, the centralized Crypto.com platform, founded in 2016 and boasting 50 million users, is also in poor condition. Its boss, Kris Marszalek, has announced the dismissal of 5% of its employees, or about 260 people out of 4,000 employees.
A month ago, the cryptocurrency crash impacted other platforms across the Atlantic. At the end of May, the Latin American platform Bitso, founded in 2014 and which has more than 4 million customers, announced that it was separating from 80 employees, while up to now it had 700 employees. At the same time, the Buenbit platform founded in 2018, based in Argentina, and which has 400,000 users, has laid off 45% of its workforce, or 80 employees, going from 180 to 100 employees. For its part, 2TM, the parent company of the Brazilian platform Mercado Bitcoin, recently separated from 12% of its workforce, or 90 employees.
Likewise, in early June, the Bahrain-based Rain Finance platform, launched in 2017, laid off dozens of employees out of a total of around 500 employees according to Crunchbase data. He did not provide precise information on the number of employees affected.
Against the tide of all these companies, Binance has announced plans to hire 2,000 employees.
Lending platforms in turmoil
On Monday, cryptocurrency lending and lending platform BlockFi announced the layoff of 20% of its workforce, or 250 people. Founded in 2017, the company has grown very rapidly from 150 employees at the end of 2020 to over 850 today. “Unfortunately, after spending a lot of time planning and thinking, this is the step we now need to take to achieve our profitability goal,” the company said.
But the losses could be even greater for BlockFi. The company, which boasts 650,000 customers, specializes in cryptocurrency lending and lending in decentralized finance (DeFi). This segment is currently undergoing severe shocks, as evidenced by the situation of the Celsius platform. On Monday, BlockFi wanted to reassure its users, indicating that it was neither exposed to Celsius nor stETH.
Trading platforms are not spared
Recently, the cryptocurrency trading firm Gemini also announced the layoff of 10% of its employees, or around 100 people out of a 1,100-employee workforce. The company has also decided to close all of its physical offices. Gemini is worth $ 7.1 billion and still manages nearly $ 30 billion worth of cryptocurrencies.
For its part, the cryptocurrency trading platform BitMex announced the layoff of 75 people in early April, or 25% of its workforce.