- Current market conditions have cryptocurrency companies on edge.
- Crypto lenders Celsius Network and Babel Finance have halted their operations.
- Coinbase (NASDAQ:COIN), BlockFi, ByBit, Crypto.com, and Gemini have all cut down their workforces due to the present downturn in the crypto market.
Due to the current market’s extreme condition, cryptocurrency companies have begun halting withdrawals, conducting emergency risk assessments, and reducing their workforces in preparation for the anticipated “crypto winter.”
There was no doubt that the financial market downturn had hit the cryptosphere hard when crypto lending platform, Celsius Network, froze withdrawals and transfers because of extreme market conditions.
Shortly after, Coinbase announced that it was cutting 18% of its workforce due to a drop in its stock and cryptocurrency prices, with CEO Brian Armstrong stating that the reason is because the company had grown too quickly during an era of bull markets.
BlockFi, a crypto-lending company, also announced that it is slashing its workforce by about 20%, with the effects felt across the board. Market conditions that have had a negative impact on the company’s growth rate and a thorough review of its strategic priorities drove the decision, according to the official report.
Babel Finance became the next major cryptocurrency lender after Celsius to halt its operations, which was a sign that the turmoil in the crypto industry is getting worse. The company informed its customers that it is dealing with unusual liquidity pressures as it tries to recover from recent market dwindles.
Following, cryptocurrency exchange Bybit announced that 30% of its staff will be laid off in an effort to streamline operations by eliminating duplication of efforts and creating leaner but faster teams.
Crypto firms Gemini and Crypto.com also announced layoffs of 10% and 5% of their workforce respectively, both companies citing the intense bear market.
Historically, there have been many bear markets. However, the current situation is gaining attention due to rising inflation and other factors that have some of the industry’s firms on edge and experts concerned about a recession occurring.
Cryptocurrencies continue to fall further into a bear market, which is prompting lawmakers all around the world to take action on issues that have been plaguing the industry for some time.