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Cryptocurrency exchange Crypto.com will cut its workforce by 20%, the Singapore-based platform announced on Jan. 13. This comes amid the recent wave of job cuts affecting cryptocurrency companies and exchanges.
Crypto.com CEO Kris Marszalek said the platform continues to perform well, but the decision was made with a long-term perspective.
According to Crypto.com’s release, “All affected personnel have already been notified. These reductions have nothing to do with performance and we sincerely appreciate all contributions to Crypto.com.” increase.”
There have been reports of job cuts as the FTX contagion continues to plague the industry. Several other players have announced job cuts to maintain liquidity amid the current bear market.
Job cuts aren’t just at Crypto.com
In a blog post, Coinbase said it would lay off 950 employees to cut costs. This is his second round of layoffs and his workforce will be reduced by 20%. At the beginning of September 2022, Coinbase laid off his 18% of employees.
The FTX failure forced Silvergate Capital to cut its workforce by almost 40%, or 200 people. According to reports, Huobi plans to cut its workforce by 20% to keep the team lean during the recession.
As the crypto winter continues, Bybit has been forced to lay off 30% of its staff. Blockchain.com, on the other hand, laid off his 28% of its workforce to become profitable this year.
3AC collapse and FTX contagion; what’s next?
Crypto.com is one of many players who have experienced the fallout of FTX’s demise. Last year’s havoc was caused by the bankruptcy of Three Arrows Capital (3AC). Due to similar headcount reductions, project cash inflows fell sharply in 2022. Billionaire Mark Cuba predicts that wash trading could rock markets again if not curbed. In a recent interview, investors stressed the need to stop the “pump and dump” activity that undermines markets.
Meanwhile, experts say the cryptocurrency contagion could spread to the bond market. CNBC quoted Cornell University economics professor Eswar Prasad as warning that crypto issuers may have to sell Treasury bills to meet redemption demands. .
That said, the global cryptocurrency market capitalization remains below $1 trillion at CoinGecko. Bitcoin has recovered slightly, with a 24-hour trading range of $18,000.
Disclaimer
BeInCrypto has reached out to the companies or individuals involved in the story to obtain an official statement regarding the recent developments, but has yet to hear back.
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