One of the most recognized exchanges in the world for the large volume of advertising it has done in recent years, Crypto.com, will add to the massive layoffs of employees that affect the cryptocurrency sector.
Indeed, Crypto.com announced this Friday, January 13 a 20 percent reduction in the size of its global workforce.
The news comes just a few days after coinbase, another digital asset exchange, said it would reduce its staff by the same percentage. Before, Huobi also applied layoffs.
Crypto.com, the Singapore-based crypto wallet, payments and exchange firm, announced the mass layoffs in a company blog post.
Kris Marszalek, the company’s CEO, said in the text that they made the decision to focus on “prudent financial management” and “positioning the company for long-term success.”
These massive layoffs at Crypto.com are the latest in a series of employee cuts that began in 2022, posts Financial Times.
In July last year, the Singapore-based company announced that it had laid off 260 employees, representing 5 percent of its workforce.
Some external reports to the company came to the conclusion that the cuts finally exceeded that figure.
Mass layoffs in the cryptocurrency sector
The news of the massive layoffs at Crypto.com come a few hours after Coinbase and Blockchain.com, two other giants in the crypto sector, also announced employee cuts.
Coinbase announced on January 10 that it was going to lay off some 950 employees, about 20 percent of its workers. Blockchain.com, meanwhile, said it would lay off around 110 employees.
The collapse in the price of cryptocurrencies, such as Bitcoin and Ether, has created a host of complications in the sector.
From the $64,000 that each Bitcoin was worth at the beginning of 2022, the price fell drastically to the current $17,000.
This notable decline has alienated many of the investors who understood that the “boom” of cryptocurrencies would have passed and it could be a bubble.
The drop in confidence in the cryptocurrency sector was consolidated when the stablecoin linked to the crypto Luna project happened, and it precipitated even more when in October one of the most important exchanges in the world, FTX, fell into bankruptcy dragging the savings of hundreds of thousands of investors.
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