Several crypto companies have to lay off employees

The industry is in crisis mode. One crypto company has frozen all withdrawals, others have announced employee layoffs.

Many have jumped on the crypto wave over the past few years. While since 2000 the prices for the Bitcoin and other virtual currencies soared, crypto startups proliferated. Companies that market digital currencies to investors even aired their TV ads in the US.

Newfangled lending deals offered sky-high interest rates on crypto deposits. Trading platforms like Coinbase, which allow investors to trade digital assets, hired people en masse. But times have changed.

Crypto in crisis mode: “The music has stopped.“.

A global industry worth hundreds of billions of dollars emerged virtually overnight. It’s currently collapsing. After weeks of falling prices for numerous cryptocurrencies, Coinbase announced on Tuesday that they 18 percent of their employees laid off. They were preceded by other companies such as Gemini, BlockFi and Crypto.com. Coins from high-profile startups like Terraform Labs (operators of Terra LUNA) have all but imploded, wiping out years of investment.

Crypto lender Celsius is holding back assets

Last Sunday, experimental cryptobank Celsius Network halted its withdrawals overnight without any notice. Apparently they had run out of money.

Some analysts believe the setback in the crypto ecosystem highlights the uncertainty of its structure. The total value of the cryptocurrency market has increased by about 4948 since last autumn percent dropped.

Some analysts believe the sell-off will continue. Crypto company stock prices have plummeted, depositors have liquidated their investments, and some industry executives are predicting a prolonged slump that could put more companies at risk.

We see that many of these companies and platforms have been standing on shaky and unsustainable foundations ,” said Lee Reiners of the New York Times, a former Federal Reserve official who teaches at Duke University Law School. Reiners in the original tone: “The music has stopped.

Inflation and rising interest rates are having an impact on the industry

Analysts believe it is related to conventional stocks. Because now that stock prices are falling, interest rates on money are skyrocketing and inflation is high, cryptocurrency prices are also collapsing. This is to prove that they are tied to the overall market. And as people increasingly withdraw from crypto investing, the outflow of wealth is exposing the unstable fundamentals of many of the industry’s popular companies.

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More than 62 According to CB Insights, crypto start-ups are a company pursuing private financing, is now worth a billion dollars or more. Last year, the industry received more than 18 USD billion in venture funding for around 1.700 transactions, according to The Block study. OpenSea, the largest marketplace for NFTs, achieved the amazing rating of 13 Billion dollars. And Wall Street banks like JPMorgan Chase, which have previously shunned crypto assets, and payment processors like PayPal have launched crypto offerings for their customers. In Germany, the Association of Savings Banks plans to trade Bitcoin & Co.

The most vulnerable companies are said to include those start-ups that have launched their own cryptocurrencies, as prices are currently collapse across the board. Bitcoin acts as an orientation for the course of many digital currencies. If the value of Bitcoin falls, numerous other coins fall with it. Some observers compare the events with the bursting of the dot-com bubble at the turn of the millennium. At the time, many of the dot-com companies went bust. Only the biggest ones like eBay, Amazon and Yahoo were left in the end. It is quite possible that some crypto companies have even been undervalued, but most have been overvalued.

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TerraUSD & Terra Luna crash caused crisis

The current crypto crisis comes from Terraform Labs, which offered TerraUSD. A so-called stablecoin with a fixed value that is linked to the US dollar. The cryptocurrency has been funded by major investment firms such as Lightspeed Venture Partners and Galaxy Digital, although critics have warned of the project’s instability. The coin’s price was algorithmically linked to its sister cryptocurrency, Luna. When Luna’s price collapsed in May, so did TerraUSD – a “death spiral” that destabilized the entire market and left some investors with financial ruin. Your deposits in the two cryptocurrencies were suddenly almost worthless.

Celsius Network has 20 billion USD frozen

This week brought new horror stories from the Celsius Network. The company manages assets for its clients with a total value of more than 13 billion US dollars. Crypto investors are offered high returns of up to 18 Percent promised. In the course of the decline in various coins, the payment of deposits has now been stopped.

Nobody knows if he or she will ever get their money back. The reason given by Celsius Network was “extreme market conditions“.

Coinbase becomes 1.84 Employees laid off

The announcement by Coinbase, one of the very large online crypto trading platforms, also had a toxic effect out. It recently announced that it would be withdrawing job offers and imposing a hiring freeze to combat the economic downturn. Last Tuesday it was announced that around 1.65 Employees will be laid off. The company was simply “grew too fast“, the reason given.

There is probably no longer any need for the many employees in times of crisis. Background. Between the end of 2021 and the end of March 2022 Coinbase lost 2.2 million active customers, that’s at least 20 percent. The company’s net sales shrank by
in the first three months of the year compared to a year ago percent to $1.2 billion. The company’s share price has fallen by

since its IPO last year percent dropped. The numbers speak for themselves.

The ” Crypto Winter” has arrived

Gemini, the crypto exchange run by billionaires Tyler and Cameron Winklevoss, also announced this month that you 08 percent of their workforce laid off. In a memo to their employees, the founders speak of a “ crypto winter “. Crypto.com and crypto lending company BlockFi also recently announced layoffs.

Some companies just don’t give up. During last Monday night’s NBA finals, Coinbase aired a commercial that sums up the issues facing the entire industry:

“Crypto is dead. Long live crypto.”

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Lars Sobiraj started in the year 2000 to work as a career changer for various computer magazines. 2006 came next to gulli.com numerous other online magazines as well. He is the founder of Tarnkappe.info. In addition, Ghandy, as he calls himself in the scene, has been bringing since 2014 at various universities and training institutions to show the participants how the Internet works.


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