BlockFi & Crypto.com lays off workers amid bloodbath in crypto market

BlockFi & Crypto.com lays off workers amid bloodbath in crypto market

BlockFi, a platform that facilitates crypto trading and lending, has recently announced the layoff of 20% percent of its 850 employees, which is equivalent to around 170 to 200 workers.

Zac Prince, the CEO of BlockFi, tweeted that the layoff is done amid the dramatic shift in the macroeconomic conditions and to push BlockFi to become profitable.

BlockFi is not the only cryptocurrency company laying off employees. Recently, another crypto trading platform, Crypto.com announced the layoff of 5% of its workforce, equivalent to approximately 260 workers, according to a tweet from its CEO, Kris Marszalek.

BlockFi said that the layoffs have come after a long period of explosive growth. The firm said that it had nearly 150 workers at the end of 2020 and since then the workforce has grown to a headcount of over 850. After the recent layoff, the company’s workforce will be around 600 employees.

Similarly, Crypto.com was performing well just a few months ago, when in November 2021, it reportedly spent $700 million to engrave its name onto a sports arena, formerly known as Staples Center, in Los Angeles.

Marszalek said that people will look back at this moment and remember it as a chasm when crypto made it to mainstream as the naming deal is supposed to last for 20 years.

The layoffs can be accredited to the extreme market scenario. The value of BTC and ETH have been falling continuously, and Celsius, another crypto lending platform, Celsius, has paused withdrawals, citing the marketing as extremely fragile.

In addition, Binance, one of the largest crypto exchange, halted Bitcoin withdrawals for nearly three hours, citing a technical issue, and in the past few months, the investors have witnessed coins like Terra going to zero.

Crypto firms have been struggling to manage the storm in the crypto market. Various other companies, like Mercado Bitcoin, Gemini, and Bitso have also had to sack at least 10% of their workers within the last month.

Source Credit: https://www.theverge.com/2022/6/13/23166028/blockfi-crypto-com-layoffs-cryptocurrency-defi-slump-halts