With the crisis in the crypto market, the Gemini exchange had already downsized. This choice was intended to help it stay afloat while waiting for the market to recover. But presumably, this reduction in its workforce did not succeed in stabilizing it.
Another 10% of posts deleted
The crypto exchange, Gemini is not doing well. After two waves of layoffs since June 2022, the crypto exchange platform announced on Monday, January 23, a third wave of staff reductions. This should concern 10% of its workforce.
The company explained, in an internal memo obtained by The Information, the reasons for its decision. She points to the market situation, which has deteriorated further since the last wave of layoffs in July. Added to this are the poor operating conditions of the crypto industry. A sector characterized by the resurgence of cases of fraud and scams that have undermined user confidence and with it, potential income.
“We hoped to avoid further reductions after this summer. However, the continued negative macroeconomic conditions and unprecedented fraud perpetrated by bad actors in our industry have left us with no choice but to revise our outlook and further reduce our workforce,” said Cameron Winklevoss, president and co-founder of Gemini.
Will crypto exchanges be able to get away with it?
The question deserves to be asked in view of the bear market which seems to last beyond expectations. In recent weeks, especially since the fall of FTX, several crypto companies have initiated a policy of hiring freezes. Those whose financial situation has deteriorated sharply dismiss purely and simply.
This is the case of Coinbase, Crypto.com, ConsenSys or even Kraken, which recently dismissed more than 1,000 of its employees. A carnage within companies, the end of which may not be for now.
Indeed, many experts and analysts believe that without a wave of deep reforms, companies will not see the end of the tunnel anytime soon. However, in some regions of the world, the debates on the regulation of cryptos are not advancing. Exchanges will need to remain resilient.
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