12/25/2022 0 Comments Crypto market watch![]() ![]() The turbulence pushed the assets under management of crypto investment products to a record-low $21.6 billion in June down 37% from May, as “looming liquidation threats” fueled “panic” among investors after Luna’s crash, CryptoCompare analysts wrote in a report. Outflows totaled $423 million in the week of June 17, virtually erasing all inflows this year and eclipsing the prior record of $198 million from January, according to crypto asset management firm CoinShares. Investors piled out of cryptocurrency investment funds at a record pace as bitcoin plunged to an 18-month low in June. A representative declined to comment on the number of layoffs, instead only saying the firm has "optimized workforce to align with current external economic headwinds." Meanwhile, reportedly laid off hundreds of additional employees after its publicized cuts in June. Weeks after its first layoffs, Gemini made dozens of additional cuts in July. Some firms have been forced to institute multiple rounds of cuts. The company’s longtime CEO also stepped down. And more recently, crypto brokerage Genesis, which is owned by billionaire Barry Silbert’s Digital Currency Group, on August 17 said it was cutting 20% of its workforce, representing dozens of jobs. ![]() Days later, slashed 25% of its workforce. The company employs more than 750 people, according to its LinkedIn. "The reality is that we have entered an unprecedented combination of crypto winter and broad macroeconomic instability, and we need to prepare," said CEO Devin Finzer, a 32-year-old who became a billionaire alongside fellow cofounder Alex Atallah this year, as he announced the layoffs. The four-year-old startup was valued at a staggering $13.3 billion in January-amid an explosion of NFT sales that has since largely cooled. The cuts have only continued in the past two months, with buzzy non-fungible token marketplace OpenSea laying off about 20% of its workforce on July 14. to navigate the storm and get out of it financially healthy.” Since then, lending platform Celsius reportedly laid off 150 workers, and Austrian trading platform Bitpanda cut 270 jobs, calling the move “necessary. Others described the cuts as “abrupt” and “sudden.”Īlso in June, Gemini, the exchange founded by the billionaire Winklevii twins, said it would cut about 10% of its 1,000 employees, and exchanges and BlockFi said they would terminate 5% and 20% of their workforces, affecting some 260 and 170 employees, respectively. “It was surprising, and it was hard,” one former employee posted on LinkedIn. In a note announcing the layoffs, Armstrong said he was planning “for the worst” and acknowledged the firm “grew too quickly” during the pandemic bull market. ![]() By far the biggest blow, popular brokerage Coinbase laid off 1,180 employees, or about 18% of its workforce, on June 14-weeks after the firm’s billionaire CEO, Brian Armstrong, warned investors that a potential recession could lead to a prolonged bear market for cryptocurrencies. It's taken the market years to recover from similar declines: When growing regulation sparked a fierce crypto winter beginning in 2017, it took more than 1,000 days for the world’s largest cryptocurrency to nab a new high.įaced with steep market declines, cryptocurrency companies have laid off more than 3,000 workers since June. Meanwhile, top cryptocurrencies bitcoin, ether and BNB have plunged as much as 70%, 75% and 65% from record highs, respectively. Piling on to bearish sentiment, Terra’s luna token, a once top cryptocurrency worth more than $40 billion, lost virtually all its value within a week in May after sister token TerraUSD, a stablecoin meant to hold a price of $1, broke its dollar peg as markets collapsed. ![]()
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