According to our estimates, more than 2,035 crypto-ecosystem employees lost their jobs in two months.
Starting this weekend, the cryptocurrency market is under new strong downward pressure after it has already survived crypto-failure a month ago, with serious consequences for investors as well as crypto companies.
The latter is indeed finding it increasingly difficult to withstand the shock, and they have announced numerous layoffs. According to our estimates, more than 2,035 ecosystem workers lost their jobs in two months. To justify the layoffs, all companies cited the impact of the cryptocurrency crash on their business.
Binance against 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 CEO Brian Armstrong said in a post. I must say that the company, as she admits, “has grown very quickly, from 1,250 employees in early 2021 to more than 4,900.
For its part, the centralized platform Crypto.com, founded in 2016 and numbering 50 million users, is also in poor condition. Its head, Chris Marshalek, announced the dismissal of 5% of employees, or about 260 people out of 4,000 employees.
A month ago, the collapse of cryptocurrency affected other platforms across the Atlantic. At the end of May, the Latin American platform Bitso, founded in 2014, with more than 4 million customers, announced that it had to part with 80 employees, while so far it had 700 employees. At the same time, the Buenbit platform, founded in 2018, based in Argentina and having 400,000 users, laid off 45% of its workforce, or 80 employees, 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.
Similarly, in early June, the Rain Finance platform, launched in 2017 and based in Bahrain, laid off dozens of employees out of a total of about 500, according to Crunchbase. It does not provide precise indications of the number of employees concerned.
Against all these companies, Binance has announced that it wants to hire 2,000 employees.
Lending platforms in turmoil
On Monday, the cryptocurrency lending and lending platform BlockFi announced the dismissal of 20% of its workforce, or 250 people. Founded in 2017, the company has grown very fast, growing from 150 employees at the end of 2020 to over 850 today. “Unfortunately, after spending a lot of time planning and thinking, this is a step we need to take now to achieve our goal of profitability,” the company said.
But the losses for BlockFi can be even greater. The company, which has 650,000 customers, specializes in cryptocurrency lending and decentralized finance (DeFi). At the moment, this segment is undergoing strong shocks, as evidenced by the situation on the Celsius platform. On Monday, BlockFi wanted to reassure its users by pointing out that it is not affected by either Celsius or stETH.
Not bypassed and trading platforms
Gemini, a company specializing in cryptocurrency trading, also recently announced the dismissal of 10% of its employees, or about 100 of its 1,100 employees. The company also decided to close all its physical offices. Gemini is valued at $ 7.1 billion and still manages nearly $ 30 billion in cryptocurrencies.
For its part, the cryptocurrency platform BitMex announced the dismissal of 75 people in early April, or 25% of its workforce.