Crypto.com reduces 5 % of the workforce in the middle of the downturn in digital assets

Crypto.com reduces 5 % of the workforce in the middle of the downturn in digital assets

As the latest harbinger of problems on the cryptocurrency markets, the top exchange crypto.com releases a large part of their workforce, according to three sources, with knowledge of the matter.

The cuts - which follow that Coinbase takes the rare step of revoking offers and imposing a stopping stop, as well as Gemini 10 % of its employees - are the latest reluctant reaction to a stricken market for digital assets that are in the lull. And, according to sources, they are an indication that the years of liquidity providers that have not yet diversified the sources of income from spreads to trade fees have not yet borne enough fruits.

Some of the released, said sources, are well -paid managers who are valued but difficult to justify when it comes to the urgent need for cost cuts.

A spokesman for Crypto.com told Blockworks that the company recently made the "difficult decision" to carry out "targeted reductions" of a total of 260 employees or 5 % of its workforce.

The sources were granted anonymity to discuss sensitive business relationships.

"I don't know how long this crypto winter will take if we are in one," said one source. "Some people say six to 12 months. Others say two years. But [thesis Layoffs] are just the tip of the iceberg. It is easy to hire big people when things go well. But suddenly it doesn't go well anymore."

Another source said that the stock exchanges "have become completely dependent on trade fees - a race down", and added that it was a difficult source of income from which one gets away without founding new businesses that are moving away from the core business of a stock exchange, the matching of crypto, moving with sellers.

The difficulties of the industry come at a time when institutional investors are increasingly taking digital assets seriously seriously in institutional investors. Even if large investors still have to use capital, they devote almost all time and resources to get up to date, say business participants.

"" It is brutal that this happens now, where we finally start to be taken seriously after we know how long these drum has hit, "said the third source. "But we'll get back on our feet."

The spokesman for Crypto.com said that the stock exchange continues to concentrate on strengthening product and engineering skills as well as on the partnership with professional sports teams, who, according to the stock exchange, “play a decisive role in our mission to accelerate the transition of the world to cryptocurrency”.

actually signed Crypto.com Lebron James as the face of his advertising efforts and crowned a thrust of $ 1 billion, which included a lively purchase of superbowl ads.

There are still signs of growth. At the end of May, Crypto.com had a manager of the competing Bittrex Stock Exchange, Kwon Park, who heads the company's web3 strategy. The company also received the conditional approval of expanding its business activities to Dubai and thus binance to connect FTX and Bybit in the emirate.

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The contribution crypto.com cuts 5 % of the workforce in the middle of the downturn in digital assets and is not financial advice.