BlockFi, a bitcoin trading and lending platform is laying off 20 percent of its workforce, which is nearly 170 to 200 employees.
In a Twitter thread, CEO Zac Prince stated that the reductions are the result of a “dramatic shift in macroeconomic conditions” and BlockFi’s quest to become profitable.
It’s not the only cryptocurrency company to downsize as another firm Crypto.com is also cutting 260 employees or around 5 percent of its staff.
CEO Kris Marszalek said: “In the next few years, people will look back at this moment as the moment when crypto crossed the chasm into the mainstream.”
The layoffs come as the crypto industry as a whole is struggling, with the value of Bitcoin and Ethereum plummeting throughout the morning of Monday, June 13.
However, BlockFi’s layoffs come after a time of rapid expansion, with the business claiming to have around 150 people at the end of 2020 and now employing over 850.
However, after the redundancies, the firm will be down to roughly 600 people.
Similarly, Crypto.com was on a roll just a few months ago. It allegedly spent $700 million in November 2021 to have its name emblazoned on the Staples Center, a sports arena in Los Angeles.
The crypto field has flourished throughout the pandemic, with major coin prices skyrocketing, NFTs emerging onto the scene, and celebrities and corporations alike praising the blockchain.
However, when 2022 progressed and interest rates rose, the boom began to slow; billions of dollars in worth were wiped out of the crypto market.
NFT sales have fallen, and businesses like BlockFi have stumbled into regulatory issues as governments try to figure out how to deal with cryptocurrency.
Not everyone who invested in the surge has profited, and many in the industry are forecasting a “crypto winter.”
Source: Business Insider