Cryptocurrency exchange Crypto.com will slash 20% of its staff, the Singapore-based platform said on Jan. 13. This comes amid a recent wave of job cuts affecting crypto companies and exchanges.
Crypto.com Chief Executive Officer Kris Marszalek said that while the platform continues to perform well, the decision is taken from a longer-term standpoint.
Crypto.com release stated, “All impacted personnel have already been notified. These reductions were in no way related to performance, and we extend our deepest gratitude for all their contributions to Crypto.com.”
The report of job cuts comes as FTX contagion continues to haunt the industry. In an effort to maintain liquidity amid the current bear market, several other players announced job cuts.
Crypto.com not Alone in Job Cuts
Coinbase said in a blog post that it would lay off 950 employees to reduce costs. This second round of job cuts slashes the workforce by 20%. Earlier in September 2022, Coinbase had let go of 18% of its employees.
Due to the failure of FTX, Silvergate Capital was also compelled to reduce the size of its personnel by almost 40%, or 200 employees. Reports suggest that Huobi is set to reduce its workforce by 20% to keep a lean team during the downturn.
The ongoing crypto winter has also forced Bybit to let go of 30% of its staff. Meanwhile, Blockchain.com has fired 28% of its employees to become profitable this year.
3AC Collapse and FTX Contagion; What’s Next?
Crypto.com is one of the many players to have experienced the repercussions of FTX’s demise. Last year’s havoc was caused by the bankruptcy of Three Arrows Capital (3AC). With similar job cuts, project cash inflows fell precipitously in 2022. Billionaire Mark Cuba predicts that wash trades could rock the market again if not kept in check. In a recent interview, the investor emphasized the need to stop market-weakening “pump-and-dump” activities.
Meanwhile, the crypto contagion could spread to the bond market, as per experts. CNBC quoted Cornell University economics professor Eswar Prasad, who warned that crypto issuers might have to sell treasury bills to satisfy redemption requests.
That said, the global cryptocurrency market cap remains under $1 trillion on CoinGecko. Bitcoin has slightly recovered, with a 24-hour trading range of $18,000.
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