Jul 13, 2022By: Eetika Kapoor
The crypto market value has crashed to below $1 trillion since January 2021, with hundreds of employees being laid off from global crypto exchanges. The collapse of stablecoin Terra Luna triggered the fall.
The crypto lending platform fired 30 percent of its staff as it was “reducing its marketing expenses, slowing down hiring efforts.”
Troubled crypto lender Celsius laid off 150 employees citing insolvency. Currently reeling under a debt of over $258 million, the company initially had 650 employees, with an asset valuation of $730 million.
Citing ‘mindful costs,’ American crypto exchange Coinbase CEO Brian Armstrong cut down staff strength by 18 percent mid June. Singapore-based Crypto.com announced on 11 June that it was laying off about 260 employees worldwide.
Gemini co-founders Cameron and Tyler Winklevoss on June 2 said they were firing over 100 people. They decided to focus on ‘critical products’ of the popular cryptocurrency exchange to survive the “current, turbulent market conditions”.
In June, BlockFi, a crypto lending platform backed by Paytm co-founder Peter Thiel, laid off 20 percent of its staff. The platform is cutting marketing spends, slowing hiring, reducing executive compensation and eliminating non-critical vendors.
Latin America and Argentina have also witnessed layoffs. Bitso, a Latin American crypto exchange, laid off over 80 employees on May 27. Argentinian cryptocurrency exchange Buenbit fired 45 percent of staff while Brazil’s crypto unicorn Mercado did the same.
Binance crypto exchange is looking to hire over 2000 employees across Europe, Asia, South America, Africa and Middle East in the crypto bear market. "We will continue to grow our team as planned and see this moment in time as an opportunity to gain access to some of the industry's best talent," CEO Changpeng Zhao said.
USA-based cryptocurrency exchange Kraken is looking to hire 500 employees globally. “We have over 500 roles to fill during the remainder of the year, and believe bear markets are fantastic at weeding out the applicants chasing hype from the true believers in our mission”, Kraken posted in a blog.
London-based crypto lending company Nexo has tripled their staff in the past year. Nexo is actively hiring for 70 job posts and will also come up with a dozen more soon.
South Korean fintech firm ‘Dunamu’ has announced a $380 million investment to create 10,000 web 3 jobs in the next five years. The firm operates under crypto exchange Upbit.