Coinbase CEO Brian Armstrong took to Twitter on Tuesday to announce that the cryptocurrency exchange would lay off 18 percent of its workforce, blaming the broader market slump. The exchange laid off 8 percent of its India staff as part of its global layoff plan. Coinbase had also previously rescinded new job offers that he had submitted.
However, the company has hired former Prosus official Arnab Kumar to relaunch and expand its operations in India.
This is not an isolated incident. Many other global crypto exchanges and companies are resorting to downsizing their workforce in these uncertain economic times.
Crypto.com’s CEO also announced earlier this week that the exchange would lay off 260 employees due to choppy market conditions. Crypto lending platform BlockFi also made a similar announcement on Monday.
The Gemini crypto exchange, run by the Winklevoss twins, also cut 10 percent of its staff and justified it by claiming that crypto winter is here.
The twins announced in a blog post earlier this month that the crypto industry is in a “contraction phase” and that this downtime has been “further exacerbated by the ongoing macroeconomic and geopolitical turmoil.”
Cryptocurrency trading platforms such as BitMEX and Robinhood have also recently reduced their headcount in recent months, blaming the global economic downturn.
Although crypto exchanges like Binance and FTX appear to have openings, those positions are only available in new geographies and untapped markets where they are setting up operations.
What is happening south of the border?
Cryptocurrency exchanges in Latin America, which has the largest number of active crypto users according to Statista data, are also facing the brunt of weak global economic signals and are participating in this “shooting fever”.
Argentine crypto exchange Buenbit has laid off 45 percent of its employees. Furthermore, crypto exchanges like Mercado Bitcoin and Bitso laid off more than 10 percent of their employees to overcome economic problems.
But what about Dubai?
This ‘shooting frenzy’ has not left the Middle East untouched. Despite positioning itself as an oasis for crypto businesses around the world, crypto exchanges in Dubai and the United Arab Emirates are also going through tough times.
Rain Financial Inc, a major stock exchange in the United Arab Emirates, has laid off a significant portion of its workforce, blaming the economic slowdown.
The exchange’s CEO, Joseph Dallago, said in a statement: “As cryptocurrencies and global markets continue to slow, this has, in turn, affected businesses around the world. We had to make tough decisions in order to navigate through this period of uncertainty, and we can confirm that we have reduced our Rain workforce.”
The crypto exchange did not disclose the number of people it let go. Business Today has contacted them for comment and the copy will be updated as their comments are received.
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