The central theses
- Crypto exchange Gemini announced today that it will be shedding about 10% of its workforce.
- The exchange cited the ongoing crypto downturn and “macroeconomic and geopolitical turmoil” as reasons.
- Last month, Coinbase also said it would slow down hiring, meaning it’s also impacted by the current crypto bear market.
Share this article
Gemini, the crypto exchange and custodian run by billionaire twins Cameron and Tyler Winklevoss, is cutting 10% of its workforce to weather the crypto market slump.
Gemini makes layoffs for the first time
Gemini appears to be capitulating to the ongoing crypto bear market.
In a blog post Thursday morning, one of the largest US-based crypto exchanges, Gemini, announced that it would be shedding about 10% of its employees to cut costs as the crypto market experiences its seventh straight month of falling prices.
“Here we are now, in the contraction phase transitioning into a phase of stagnation — what our industry calls ‘crypto winter,'” the twins said in the open letter to their employees. “All of this has been further exacerbated by the current macroeconomic and geopolitical turmoil,” they added, stressing that Gemini is not alone in the current situation.
Cryptocurrency prices have been trending down since the market peaked at $3 billion in November last year. As usual, falling prices usually result in less interest from retail investors, resulting in lower trading volume and therefore lower earnings for crypto exchanges like Gemini.
Interestingly, while Coinbase has signaled its intention to slow down hiring, Gemini is the only high-profile crypto company to start downsizing so far. Despite what appeared to be poor market conditions, money continued to flow into the industry, with venture capital firms such as Andressen Horowitz setting a record $4.5 billion Fund earlier in May, Binance Labs raising 500 million dollarsand several crypto startups raising more than $350 million per round at multi-billion dollar valuations.
According to today’s blog post, Gemini expects the market to eventually settle into “a new equilibrium that’s higher than before.” Historically, the industry has grown and contracted in cycles, with each successive phase spawning new trends and narratives that have more users and investors on board than the previous one. Gemini sees the current phase of contraction as “an opportunity to double down on its strengths” so it can become an “innovation catalyst” in the crypto market’s next growth cycle.
Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.
Share this article
The information on or through this website is obtained from independent sources which we believe to be accurate and reliable, but Decentral Media, Inc. makes no representations or warranties as to the timeliness, completeness or accuracy of any information on or through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or any other financial advice. Information on this website is subject to change without notice. Some or all information on this website may be or become out of date, incomplete or inaccurate. We have the right, but not the obligation, to update any information that is out of date, incomplete or inaccurate.
You should never make an investment decision about any ICO, IEO or any other investment based on the information on this website, and you should never interpret or otherwise rely on the information on this website as investment advice. We strongly encourage you to consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO or any other investment. We do not accept compensation in any form for analysis or coverage of ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.