Massive Job Loss As Crypto Firms Cut Jobs Amid Market Slump

Many crypto firms are cutting costs by slashing jobs amid a prolonged market correction and a drop in cryptocurrency prices. The market downturn has spilled over into the tech sector as more companies brace for the stormy days ahead.

Gemini, Coinbase Cut Jobs

Gemini is the latest crypto exchange to have announced substantial job cuts on Thursday. 

The Winklevoss-led crypto service provider revealed that Gemini laid off up to 10% of its workforce. The firm cited the turbulent market situation as prompting such drastic measures.

Moreover, the company noted that the storm might last for some time, considering the broad impact on the industry. Meanwhile, another crypto firm, Rain Financial, also announced it had slashed many jobs, citing market difficulty.

However, the United States’ largest crypto exchange service provider, Coinbase, revealed it is halting its hiring process. The U.S.-based exchange noted that it would also rescind previously accepted job offers till the storm is over.

According to Masha Boone of Rarible, the current scenario hovering over the digital asset industry will likely extend to the summer. Boone added that the market volatility and workforce layoff are unfortunate incidents the sector is grappling with.

However, Boone reiterates that this is an opportunity for the industry to reflect on and reconsider its next direction.

Meanwhile, Boone revealed to CoinDesk about Rarible’s plan to use the recent event to restrategize. The firm will use the current event to improve its internal development and other aspects of its operations.

Crypto Exchanges More Affected

The crypto market meltdown coincides with the decline in other markets, followed by high inflation and interest rate hikes. Additionally, the hike in interest rates has triggered investors to move to more high-tech firms and less risky equity markets.

Before the market route, cryptocurrency exchanges rely mostly on retail traders during the period of excess liquidity. However, the market collapse has seen a significant reduction in trading activities.

Due to the slowdown in trades, crypto exchanges are at the forefront of job cuts in the current situation. Aside from the moves by Gemini and Coinbase, an Argentine-based crypto firm, Buenbit, reduced its workforce by 45%.

Furthermore, another Latin American-based crypto exchange, Bitso, dropped 80 staff from its workforce of 700+. Additionally, Mercado Bitcoin, a Brazilian crypto holding firm, laid off more than 80 employees.

Job Losses are Temporary

According to George Sutton, an analyst at Craig Hallum, a research firm, exchanges are okay to cut costs to stay afloat. The industry has an abundance of disruptive digital asset development patterns and blockchain technology.

As a result, firms in the industry can pick any available talent. In the meantime, the layoff is a temporary measure, added Sutton.

CoinDesk quotes Nicholas Strange, founder of a crypto hiring firm based in Seattle, Crypto Talent, saying only the best would survive the industry. According to Strange, crypto exchanges with verifiable use cases and benefits will stay in the industry in the coming years.