Coinbase Exchange, Genesis & Silvergate Capital lay off 20%, 30% and 40% workforce to survive the crypto bear market.
2023 did not bring any respite to the existing bear market. From investors to employees everyone is feeling the heat in the current market crash. Leading crypto platforms have chosen the path of reducing headcounts to survive the bear market.
To start the year, we have Silvergate Capital selling $5.2 billion worth of assets at $718 million loss to cover up the excessive withdrawals from the platform after the FTX crash. The total asset withdrawals stand at $8.1 billion.
To further lessen the risk of bankruptcy, it has fired 40% or 200 employees from the total workforce. Days after, Genesis the famous crypto lending platform announced to lay off 30% of its workforce after freezing customer withdrawals.
Genesis parent company Digital Currency Group (DCG) is under immense pressure from Gemini after it failed to give back $900 million worth of crypto assets handed over by Gemini for yield generation.
The next blow for crypto professionals came in the form of Coinbase. The US-based crypto change announced laying off 20% or nearly 950 employees this year as part of the company’s restructuring policy.
This will be the third round of layoffs by Coinbase in the crypto bear market. The news came 6 days after Coinbase was asked to pay $50 million to New York regulators to settle background check charges.
The marketcap of the industry fell from $3 trillion to $860 billion within a year, leading to the bankruptcy of top platforms like Celsius, Voyager Digital and BlockFi. After the rise in inflation, the market will take more time to recover than it did back in 2018.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.