For many people who have some affinity for crypto, the past month has been excellent. In fact, Bitcoin (BTC) is up nearly 40% and sentiment has recovered to levels last seen before the demise of the Terra ecosystem (LUNA).
However, it is not a party for everyone: many companies from the crypto industry have had to send employees out in the first month of the new year. Which writes Cointelegraph based on reports from Bloomberg, among others.
Crypto companies are cutting workforce
14 crypto-related companies laid off a total of 2,900 employees in the past month. For example, you could read in the crypto news earlier that both Coinbase and Crypto.com had to cut their workforce as a direct result of the ongoing bear market. For Coinbase, this was the company’s second round of layoffs, having laid off about 1,100 employees (18% of the workforce) in June and losing another 950 employees (25% of the workforce) in the past month.
Crypto.com had already laid off a total of 2,000 employees – about 40% of its workforce – during the persistent bear market. This time, another 950 employees were laid off, which was equivalent to about 20% of the workforce.
Digital Currency Group (DCG), the parent company of now-bankrupt crypto lender Genesis, has laid off 66 employees as the company navigates a financial crisis. Some subsidiaries had to cut their workforce more sharply: Crypto exchange Luno and Genesis laid off 330 and 63 employees respectively. In addition, DCG has closed the doors of asset manager HQ Digital, at the expense of 26 employees.
The most recent crypto company forced to cut staff is Prime Trust. In total it has 100 people laid offwhich equates to about 30%.
Strong performance bitcoin
These layoffs come in tandem with bitcoin’s strong performance, which almost hit $24,000 this week. However, there were also many layoffs at other large companies outside the crypto sector. For example, about 48,000 employees were laid off by just four companies: Google, Amazon, Microsoft and Salesforce.
While some may believe there is more gloom ahead, crypto hedge fund Pantera Capital believes there has never been a better time to start a blockchain business than now.