The ongoing crypto crash is continuing to wreak havoc on exchanges and related platforms. Gemini in New York, for example, recently announced that it is planning to lay off roughly ten percent of its staff.
Gemini Says It’s Letting Several People Go
Several people working at the Gemini Exchange can expect to lose their jobs this month given that the exchange can no longer keep up with the crypto dips that have been occurring. Tied so heavily to digital assets, the company is likely losing business and thus does not have the funds necessary to ensure everyone can remain onboard.
The company has closed its physical location in New York, and thus all layoff discussions will occur via Zoom meetings according to a recent memo issued by the Winklevoss Twins, the men who founded the exchange. The move has put a lot of traders on edge and many analysts have come forth to claim that a crypto winter could very well be on its way – much like what was witnessed in the year 2018.
At the time of writing, the Gemini LinkedIn page reports that the company employs roughly 1,000 people. If ten percent are indeed let go, this would amount to 100 people losing their jobs. Thus, Gemini would be reducing its staff to about 900.
The company memorandum reads:
To that end, we have asked team leaders to ensure that they are focused only on products that are critical to our mission and assess whether their teams are right sized for the current, turbulent market conditions that are likely to persist for some time… Today is a tough day, but one that will make Gemini better over the long run. Constraint is the mother of innovation, and difficult times are a forcing function for focus, which is critical to the success of any startup.
The crypto crash appears to be affecting other crypto exchanges as well, though not in the same way. For example, Coinbase – after announcing that it was looking to triple the size of its team throughout 2022 – commented in a statement that it was now looking to slow down its hiring process, though at press time, the company doesn’t have any plans to let employees go.
A Hard Time for Traders
2022 has proven to be one of the most devastating years in the history of crypto. We are only six months in, yet all the gains made by bitcoin during the previous 12 months have virtually been wiped from the slate. The world’s number one digital asset by market cap was trading at a whopping $68,000 last November, the currency’s new all-time high.
Sadly, this now looks like a distant memory as over the past month or so, the asset has repeatedly dipped below the $30,000 line, meaning more than 50 percent of its overall value has disappeared.