Major Exchanges Opt ‘Lay-Offs’ To Defend Market Meltdown

Major Exchanges Opt ‘Lay-Offs’ To Defend Market Meltdown
  • Blockchain.com is reducing about 150 employees, due to financial losses.
  • The exchange recently lost $270 million from Three Arrows Capital.

As per reports, Luxembourg-based cryptocurrency exchange Blockchain.com is disbanding 25% of its employees, amid financial losses and the collapse of the global crypto market. The latest workforce reduction will affect nearly 150 laborers in Argentina, the USA, and the UK, according to a spokesperson. The exchange platform will also close its offices in Argentina along with canceling its development program in various countries. 

Recently, Blockchain.com revealed that the firm is suffering from a $270 million loss to the Singapore-based crypto hedge fund Three Arrows Capital (3AC), in the form of U.S. dollars and crypto loans. Additionally, in the last two years, the firm has dramatically increased its staff size, going from 150 to over 600. But the financial impact of Three Arrows Capital’s failure will be offset by the company’s fundraising activities. 

Crypto Firms Running Through Difficulties

In the previous weeks, many crypto-based exchanges and firms dismissed their employees due to numerous reasons. In the last week, the NFT marketplace, OpenSea, has laid off its 20% staff amid the crypto winter and its instability. About a month ago, another exchange named Huobi Global, reduced more than 30 percent of its workers. 

Additionally, other crypto platforms like BlockFi, Coinbase, Gemini, and Crypto.com are also reducing their particular workforce. 

Before the current situation, crypto-based platforms expanded quickly as the price of bitcoin reached more than $60,000, capping a bull market in digital assets. But the factors such as crypto winter, inflation, liquidity, and price volatility resulted in a huge crash among the crypto businesses. 

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