According to several reports published on Monday by the Information, which cited an internal communication, cryptocurrency exchange Gemini is cutting 10% of its personnel in what seems to be at least the third wave of layoffs in the last eight months.
Gemini, which was established by the crypto industry pioneers Cameron and Tyler Winklevoss, who both competed in rowing for the United States in the Olympic Games, has been under a lot of pressure in recent months as a result of a high-profile dispute involving the cryptocurrency company Genesis and a product that the two companies jointly offered to customers.
In 2023, cryptocurrency companies are getting off to a shaky start, with major players such as Coinbase Global Inc. (COIN.O) laying off employees and Genesis Global Capital, the lending arm of Genesis, filing for bankruptcy protection. Coinbase Global Inc. (COIN.O) is one of the companies that is laying off employees.
According to the bankruptcy petition that Genesis filed last week, the company owes Gemini, its biggest creditor, a total of $765.9 million. The cryptocurrency market, which was already under pressure as a result of increasing interest rates, was pushed even harder by the collapse of FTX in November, which has negatively impacted consumer attitudes about the sector.
Crypto companies may lay off employees for a variety of reasons, such as a downturn in the market, changes in the regulatory environment, or a shift in business strategy. Additionally, the crypto industry is relatively new and rapidly evolving, which can lead to a high level of uncertainty and volatility for companies operating in the space. As a result, some companies may need to reduce their workforce in order to stay financially viable.
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