- More than 300 workers would be impacted by the company’s decision.
- The DCG is already under pressure from the liquidity crisis.
Another member of the Digital Currency Group (DCG) has announced layoffs, a further indicator of continued market instability that started with the Genesis bankruptcy. The Luno exchange announced the termination of almost 35% of its worldwide workforce, citing market volatility as the reason for the cuts.
Consensys, the firm behind MetaMask, has announced layoffs due to a slowing market. The crypto market had a hard 2022, but the latest surge is providing welcome upward momentum.
Not Immune To the Turbulence
More than 300 workers, according to a report, would be impacted by the company’s decision. Genesis Global, a cryptocurrency lender, filed for Chapter 11 bankruptcy protection last week after being swept up in the FTX-led wave of insolvencies. The DCG is already under pressure from the liquidity crisis, and Luno’s current action is just another blow. The cryptocurrency trading platform is heavily invested in the UK capital of London, with a staff of around 900 people.
Marcus Swanepoel, CEO of the firm, remarked:
“2022 has been an incredibly tough year for the broader tech industry and in particular the crypto market. Luno unfortunately hasn’t been immune to this turbulence, which has affected our overall growth and revenue numbers.”
DCG, a conglomerate that owns crypto broker Genesis, investment management business Grayscale, and other crypto media outlets, is trying to seek new funds in order to recover from its financial difficulties after the unexpected collapse of the FTX crypto exchange in November 2022. New reports from January 12 claim that Genesis Global has a debt to its creditors of over $3 billion.
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