According to the Sydney Morning Herald, the Australian cryptocurrency exchange Swyftx has let go of 35 percent of its workforce, which amounts to 90 people, as it tries to make it through the severe cryptocurrency winter.
The majority of the staff members who were let go were from the company’s research and development division. According to the most recent regulatory filing made by Swyftx, the company’s earnings dropped by 23% as a direct result of the precipitous reduction in the value of cryptocurrencies. Additionally, this is the second wave of layoffs that have taken place in 2022 for the bitcoin trading company situated in Brisbane. In the beginning of this year, they let go of 74 staff members.
Obviously, Swyftx is not in this situation by itself. CoinJar, a cryptocurrency start-up based in Melbourne, laid off 20% of its workforce the same week. The unexpected fall of the FTX empire has sent the cryptocurrency market into a state of disarray, and some sceptics fear that this may signal the end of the cryptocurrency industry. The collapse of this $32 billion industry behemoth has had an impact on the lives of about 30,000 people in Australia. Despite the fact that Swyftx did not have any direct exposure to the ailing FTX exchange, the firm has been struck by a crisis of trust as a direct result of the collapse of the corporation.
Even before the crisis that was caused by FTX, certain major industry participants, including Coinbase and Gemini, stated that they would be laying off a large number of employees. A number of well-known companies, including Kraken, Dapper Labs, Galaxy Digital, and others, have been forced to lay off employees as a direct result of the continuing cryptocurrency winter. However, despite the crypto winter, Ripple and other firms continue to hire new employees, giving the impression that they are unconcerned by the situation.
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