Amid rising inflation and slowing demand, the value of major cryptocurrencies has plummeted dramatically over the last few days, leading to massive layoffs and hiring freezes at crypto-focused companies.
Cryptocurrency prices have been falling in tandem with a broader market downturn, leaving crypto businesses, lenders, and traders reeling.
According to data portal CoinMarketCap, the value of the cryptocurrency market went below $1 trillion, reaching as low as $926 billion, for the first time since January 2021.
Here are some of the companies that have announced layoffs with the cryptocurrency markets falling:
Coinbase's cofounder and CEO Brian Armstrong announced in a blog post on June 14 that the business will reduce around 18 percent of its personnel.
Armstrong described the reduction as a result of economic conditions and the risk of another "crypto winter" in his blog post. "We grew too quickly," he added.
Also Read: Coinbase CEO Brian Armstrong says the exchange 'over-hired' in 2021
BlockFi, another crypto lending platform, announced on June 13 that it would be laying off around 20 percent of its workforce.
According to CEO Zac Prince's Twitter post, it appears to be a situation of too much growth. BlockFi now has roughly 850 employees, up from 150 at the end of 2020.
BlockFi said it had also implemented other cost-cutting measures to bring expenses down, including reducing its marketing spending and lowering executive compensation.
Crypto.com announced on June 11 that it would be laying off 5 percent of its workforce, or about 260 people. The changes will allow Crypto.com's CEO Kris Marszalek to "remain focused on executing on our strategy and optimising for profitability while we do so," according to a tweet.
Watch: Crypto Crash Decoded | What's bothering Bitcoin and the rest?
The layoffs come at a time when inflation in the United States has climbed to its highest in decades and geopolitical tensions have roiled global markets.
The crypto industry is facing one of its worst days ever as Bitcoin and Ethereum crash nearly 18%. Bitcoin tumbled to an 18-month low under $23,000 on June 13 in a broad cryptocurrency crash. It has now tanked by 66 percent since striking a record peak $68,991.85 last November.
Also, on June 12, cryptocurrency lending platform Celsius Network announced that it was “pausing all withdrawals, Swap, and transfers between accounts”, citing “extreme market conditions”. Celsius, with roughly 1.7 million customers and more than $10 billion in assets, gave no indication in its announcement when it would allow users to access their funds.
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