Crypto Lending Platform ‘BlockFi’ Announces Laying Off 20% Staff

Crypto Lending Platform BlockFi Files For Chapter 11 Bankruptcy
  • Coinbase and Gemini also chose to reduce the number of employees.
  • The platform claims to have tried multiple ways to decrease losses.

As a result of exceptionally challenging market circumstances, BlockFi has chosen to lay off 20% of its workforce. Investors and institutions alike have had a difficult time in the present market., for example, recently stated that it would be cutting off 5% of its workforce. Similarly, Coinbase and Gemini chose to reduce the number of employees. The decision was made due to the bear market’s reduced activity and profitability.

Market Conditions Brought Negative Impact

It was also addressed in a blog post by BlockFi’s creators. Team members have had some difficult days, according to the blog. Today may be their hardest because of choice. As a result of the adverse effects of the recent economic downturn, the group decided to go through with their plan, as detailed in their letter.

The statement stated:

“We are reducing our headcount by roughly 20% and the reduction impacts every team at the company. This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities.”

There have been negative market circumstances since Q1 of 2022, which has led to a severe collapse in the equities and crypto markets. By decreasing marketing expenses and CEO salaries and halting personnel growth, the platform claims to have tried to decrease losses. The group also mentioned a difficult choice and a hard day.

Celsius Network, a major cryptocurrency lending provider in the United States, had frozen withdrawals and transfers due to “extreme” market circumstances. It was the first time since January 2021 that the value of all cryptocurrencies fell below $1 trillion due to the Celsius move. This has sparked concerns about how it would affect other assets or enterprises.

A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.