Crypto's hiring spree goes in reverse as prices continue to decline
Layoffs announced last week at cryptocurrency startups may be just the beginning of a reckoning at crypto startups, some analysts said, as the still-young
Layoffs announced last week at cryptocurrency startups may be just the beginning of a reckoning at crypto startups, some analysts said, as the still-young crypto market faces a sudden reversal from the celebrity-driven boom it experienced a few months ago.
Coinbase, the largest U.S.-based crypto exchange, said it was planning to cut 18% of full-time jobs, or about 1,100 people, and BlockFi, a crypto lending startup, said it was cutting 20% of staff, or about 170 people.
Executives at both companies blamed the possibility of a recession and a slowdown in customer fees for spurring them to try to save additional cash — factors that analysts said are likely to hit the rest of the crypto market, too.
“The worst is not even behind us. It’s just getting started,” said Christopher Vecchio, senior strategist at DailyFX, an analyst firm.
“A lot of these companies tried to expand too quickly, and they had a fundamental misread on the macro environment,” he said.
Rating: 5