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 strong downward pressure, after having already experienced a crypto-crash a month ago, with serious consequences for investors, but also crypto companies.
The latter are indeed finding it increasingly difficult to withstand the shock and have announced numerous rejections. 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 the companies cited the impact of the crypto crash on their business.
Binance versus 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 start of 2021 to more than 4,900.
For its part, the centralized platform Crypto.com, founded in 2016 and which claims 50 million users, is also in bad shape. Its boss, Kris Marszalek, announced the dismissal of 5% of its employees, or about 260 people out of 4,000 employees.
A month ago, the crypto crash had an impact on 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 had to part with 80 employees, whereas it had until now 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, was recently separated from 12% of its workforce, or 90 employees.
Similarly, in early June, the Rain Finance platform, created in 2017 and based in Bahrain, laid off dozens of employees out of a total of around 500 employees according to Crunchbase data. It did not give precise indications on the number of employees concerned.
Against the current of all these companies, Binance announces that it wants to hire 2,000 employees.
Lending platforms in turmoil
On Monday, the cryptocurrency lending and borrowing platform BlockFi announced the layoff of 20% of its workforce, or 250 people. Founded in 2017, the company had grown very quickly, growing from 150 employees at the end of 2020 to more than 850 today. “Unfortunately, after spending a lot of time planning and thinking, this is the step we now need to take to achieve our goal of profitability,” the company said.
But the losses could be even greater for BlockFi. The company, which claims 650,000 customers, specializes in crypto lending and borrowing in decentralized finance (DeFi). This segment is undergoing strong tremors at the moment, 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 to stETH.
Trading platforms are not spared
Newly, the company specializing in cryptocurrency trading Gemini has also announced the layoff of 10% of its employees, or around 100 people out of a workforce of 1,100 employees. The company has also made the decision to close all of its physical offices. Gemini is valued at $7.1 billion and still manages nearly $30 billion worth of cryptocurrencies.
For its part, the crypto trading platform BitMex announced the layoff of 75 people in early April, or 25% of its workforce.