Cryptocurrencies have been going through a difficult situation after the constant price drops that have been recorded during the first half of 2022. Furthermore, click here to know more about crypto.
Many recent crypto news headlines reference the massive layoffs being executed by various companies in the crypto ecosystem.
This situation is not very optimistic; on the contrary, it generates more anxiety and panic in the financial market.
Many engineers who were part of companies’ workforce in the cryptographic environment could even give up continuing to work with this type of organization. Still, the current offers are also abundant, and many of these employees managed to emigrate to other companies with opportunities.
Three Major Crypto Exchanges Join Layoffs
We have seen how the blow traditional technological and digital assets have received drastically affected established organizations whose stability was not previously out of balance.
We are facing a moment that could define the future and sustainability of many crypto investment companies.
The layoffs generated do not correspond to small amounts; more and more leading companies are joining this trend.
Speculation could usually play a trick, but the positioned companies are taking firm steps in terms of personnel reduction; this is what most impacts cryptocurrency investors since they are not risk projects or just entering the digital financial market.
The mass layoffs began after the announcement of the company Coinbase Global Inc, which made public the recession situation that they consider they are entering after the resounding fall of cryptocurrencies.
His greatest fear is a possible bankruptcy. It led to an imminent reduction of more than a thousand employees, equivalent to 18% of the total payroll. It was a quite drastic and devastating decision for a company positioned in the stock market with a pretty impressive hiring record.
The domino effect was immediate, and it was then that more companies began to join the decision to fire their employees after considering that revenues were declining. So possibly, the crypto market could be complicated.
Such is the case of companies such as Gemini, Crypto.com, BlockFi, and BuenBit, which have reduced their workforce between 5 and up to 45% of the global human talent they possess; adding them could reach a sum of 2,000 employees in less than one month.
Some crypto companies bet on growth.
The famous comment is that cryptocurrencies are coming to an end. Still, experts are often wrong as cryptocurrencies have gone through even more critical stages and recovered, just as they did in 2018.
This year, Bitcoin experienced one of its most drastic falls, reaching a 70% decrease in its maximum historical value of 20,000 dollars. However, many speculations arose; people in business did not deny the possibility of building solid foundations in a market that perhaps had very little time to create.
Many companies that were established during this period of cryptographic decline are today the success that, after the pandemic, consolidated the cryptocurrency financial market.
The correct term for many entrepreneurs whose primary investments are in cryptocurrencies is not to store but build because the purpose is to improve the ecosystem, not worsen its reputation.
It is usually known that it is a highly volatile and risky environment, but this has not precluded the ability of many to multiply their capital.
Suppose the general panorama is observed at the investment level. In that case, the technology sector is not very far from this downward trend. Still, even so, its investors have not stopped trusting these assets.
That is why discarding digital currencies as future investments is a radical idea; all cycles usually have recovery phases. Nevertheless, valuing the various crypto assets and taking advantage of their diminished value is attractive.
Crypto employees are benefited for a while
Massive layoffs have also come with compensation for employees who provided services to these digital finance corporations for several years.
Not all companies have the same economic capacity, especially if they are willing to reward their former workers.
Among some of the measures for the benefit of the workers is the cancellation of wages for three months as compensation, in addition to granting them medical insurance with coverage anywhere in the world and the possibility of being part of the human talent center of the crypto companies.
We are facing a new stage of the cryptographic era; it only remains in the hands of time to know its final trajectory, although all the analyses suggest that a significant rise will precede this phase.