Gemini and 2TM, the holding company of Brazil's largest crypto exchange, announced laying off staff in light of the challenging market conditions.
Winter is coming in summer this time, at least as far as crypto exchanges are concerned.
As Coinbase announced a hiring freeze, other exchanges went even a step further and announced the layoff of significant parts of their workforce.
Start with Gemini, which published a blog post, announcing "a difficult decision" that would reduce the size of its team. It read:
"After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce."
The exchange expects "turbulent market conditions that are likely to persist for some time" and sees the industry in a "contraction phase that is settling into a period of stasis." Even though Gemini expects a "profound" impact of the "crypto revolution," the real-world implications of its decision are less flowery: about 100 staff are expected to leave, considering the company's size on LinkedIn. Gemini announced that individuals impacted will receive a separation package and healthcare benefits.
Although likely unrelated, the announcement comes against the backdrop of a lawsuit by the Commodity Futures Trading Commission. It is suing Gemini for "making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with the self-certification of a bitcoin futures product," according to The Block.
More layoffs in South America
Gemini wasn't the only exchange that cut its headcount. As CoinDesk reports, 2TM, the holding company for Mercado Bitcoin, Brazil's largest crypto exchange by market valuation, fired over 80 employees. Similar to Gemini, it cited "the changing global financial landscape, rising interest rates and inflation" as the main reasons for its decision.
CoinDesk also reports layoffs by Bitso, another Brazilian crypto exchange, which fired 80 employees of its own. Yet another 80 employees were let go by Buenbit, an Argentina-based crypto exchange.
As the liquidity crunch in crypto continues, more cost-cutting measures by exchanges and crypto firms can be expected. If crypto winter is like that in summer, real winter may hold a few more nasty surprises for crypto.
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