The cryptocurrency business was severely impacted by crypto winter. Some cryptocurrency exchanges, such as Coinbase, have already begun to lay off employees. Businesses that are dependent on cryptocurrencies, such as MicroStrategy, are falling behind their competitors. Crypto.com is the latest business to succumb to the effects of the ongoing crypto cold.
The precipitous decline in the value of cryptocurrencies, which wiped out more than half of bitcoin’s (BTC-USD) worth in less than a year, has far-reaching implications. Already having wreaked havoc on some of the industry’s most prominent brands, it appears that crypto.com is the next target. In terms of the total number of employees, Crypto.com, which is the third-largest company in the cryptocurrency exchange industry, will now have a headcount that is 20% lower.
In order to provide clarity on the situation, the founder and current CEO of the firm, Kris Marszalek, wrote a post on the company’s blog. He mentioned that the business was growing on previous momentum, but he also mentioned that this momentum came to an abrupt end when the macroeconomic environment turned against cryptocurrencies in general.
Even after accounting for the layoffs, the most recent estimate places the company’s total workforce anywhere between 3,600 and 4,500 people. This is not the first time that layoffs have occurred at crypto.com; in June of 2017, the company let go of 260 employees, and from July through October of the same year, another 2,000 employees left their jobs. Despite the fact that the company’s sales reached $1.2 billion by the year 2021, the business had a difficult time overcoming both internal and external challenges. The failure of FTX was one of these factors, along with many errors in a transfer that resulted in more than $400 million being transmitted to other exchanges.
Bitcoin had a majority of losses throughout the course of the previous year. Since April 2022, the value of bitcoin has been steadily going down and has already dropped by more than half. Not so long ago, it saw an upturn that made it possible to once again come close to reaching the $20,000 milestone.
