In the first month of 2023, crypto companies took a more cautious approach as they trimmed their workforce in response to the ongoing economic uncertainty. Despite a rise in Bitcoin prices, at least 14 crypto firms have let go of 2,900 employees in January, according to a January 31st report.
The crypto industry saw significant job cuts from top companies such as Prime Trust, Matrixport, Gemini, Coinbase, Digital Currency Group, and many more.
The crypto industry has faced numerous challenges in the past year, including regulatory uncertainty, major companies’ fallout, and security concerns. Companies are still cautious about investing in new hires and expanding their operations.
The impact of these job cuts will likely be felt by the wider crypto community, as many of those affected are likely to be experienced professionals with a wealth of knowledge and expertise.
Trimmed Down In Crypto Industry As Bitcoin Rise
Prime Trust, a crypto infrastructure provider, reportedly reduced its employee count by a third, equivalent to an estimated 100 layoffs. Meanwhile, crypto platform Matrixport and exchange Gemini also saw significant reductions in their workforce.
Another crypto giant, Coinbase, made the largest staff layoff of the month, with 950 employees terminated on January 10th. Other exchanges such as Crypto.com, Luno, and Huobi also made significant cuts, with 500, 330, and 320 employees laid off, respectively.
Digital Currency Group, which has been struggling with a financial crisis, and its subsidiaries also saw significant layoffs, with 485 employees let go in January. The DCG-owned Luno had the most layoffs, while DCG itself, Genesis, and HQ Digital shuttered, affecting a total of 155 employees.
Other notable layoffs include the 200 employees from Silvergate, 110 from Blockchain.com exchange, and 96 from ConsenSys, the parent company of MetaMask. NFT marketplace SuperRare also saw 20 staff members being laid off.
These mass layoffs in the crypto industry were not in isolation. In January 2023, around 48,000 people were laid off from just four companies: Google, Amazon, Microsoft, and Salesforce.
Bitcoin Rise: A Positive Outlook for the Crypto Industry
Despite the mass layoffs, Bitcoin has been performing strongly in the month, targeting nearly $25,000 and reaching a high of $23.900 on Sunday. Institutional demand for BTC has continued to increase, leading to the best month for the coin, as reported by TronWeekly.
Crypto hedge fund Pantera Capital believes there has never been a better time to start a blockchain company. According to them, bear markets provide “less noise and distraction from building.”
While the crypto industry has faced its fair share of challenges, the rise in Bitcoin price and institutional demand presents opportunities for growth and development.
The mass layoffs, while unfortunate, also provide a chance for companies to streamline their operations and become more efficient. Despite the challenges, the future of crypto remains bright and full of possibilities.