The 2022 crypto bear market is not backing out as many asset values are down with a corresponding loss on the path of investors. As a result, many firms have declared bankruptcy, while others are employing different strategies to minimize costs and stay in business.
Currently, some crypto-related organizations have resorted to layoffs to cut operation costs. Among the firms that employed this strategy is BitMEX, a Seychelles-based derivatives trading platform. In addition, a Chinese Media, Wu Blockchain, recently reported via Twitter that the Firm plans to dismiss one-third of its workforce.
BitMEX resorted to this option one week after its CEO Alexander Hoptner, who led for two years, resigned and was replaced by Stephen Lutz.
Other Crypto-Related Firms That Conducted Lay-Offs
However, BitMEX is not the only crypto-related firm with plans to reduce its workforce. Galaxy Digital plans to do the same. The latest reports revealed the New York-based digital finance service provider intends to reduce its employees by approximately 20%.
According to sources, the firm is yet to decide the exact number of employees to lay off. However, it could be within the range of 15-20%.
Since Galaxy Digital has up to 375 employees, the layoff may affect about 50 to 70 staff. The firm’s spokesperson Michael Wursthorn said they are still considering the team structure and would share details when finalized.
Other digital asset firms like Gemini, CryptoCom, Coinbase, Huobi, Bybit, and many more also took similar actions previously. In July, a report came in through an anonymous source that Gemini laid off 7% of its workforce. According to reports from TechCrunch, Gemini might conduct additional employees lay off up to 150, which is 15% of its total workforce.
In June, Coinbase, Bybit, and CryptoCom also dismissed some employees at the onset of the bear market. Furthermore, Huobi, a once prominent crypto exchange in China, laid off 30% of its staff in June due to the crypto downtime.
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Binance Took An Opposite Stance To Expand Instead Of Downsizing
However, while other firms are downsizing, Binance, the world’s largest crypto exchange, decided to follow the opposite trend. Despite the extreme market conditions, Binance expanded its team in June 2022.
Binance CEO Changpeng Zhao (CZ), in a statement at Consensus 2022 conference, boasted about having a healthy war chest. That means the firm is strong enough to survive the harsh macroeconomic conditions and decided to expand its team instead of downsizing.
According to the CEO, Binance invested cautiously and avoided high promotional expenses like Super Bowl ads. CZ confidently stated that the crypto winter is an excellent time to employ new staff.
Meanwhile, other crypto-focused firms like Three Arrows Capital, Celsius Network, and Voyager are in a much bigger mess. The crypto winter forced the firms to file for Chapter 11 Bankruptcy at the US Bankruptcy Court, as they could no longer stay afloat.
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