The cryptocurrency industry starts 2023 with a new wave of job cuts

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In 2022, nearly 27,000 people lost their jobs in the cryptocurrency industry. Photo: Getty

The cryptocurrency industry has seen a series of job cuts throughout 2022 and, just days into the new year, another round of layoffs is set to hit the struggling sector.

In 2022, nearly 27,000 people lost their jobs in the cryptocurrency industry, according to a Coindesk report.

Now Huobi Global, a Seychelles-based cryptocurrency exchange and a major player in the industry, is planning to lay off 20% of its workforce.

Check: Real-time prices of cryptocurrencies

Huobi ranks 18th by trading volume in a list of global cryptocurrency exchanges.

Watch: Web3 Industries to Watch in 2023 | The mile of cryptocurrencies

A spokesperson for Huobi told Cointelegraph on Friday, “With the current state of the bear market, a very lean team will continue to move forward.

“Personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency, and return to the top three.

“The planned layoff rate is around 20%, but it’s not implemented now.”

So far in 2023, two other cryptocurrency-related firms have implemented job cuts.

On Jan. 5, cryptocurrency lender Genesis Global Trading laid off 30% of its staff.

This was a reduction of approximately 62 employees, bringing the total headcount to 145.

Genesis is owned by Digital Currency Group (DCG), which is also the parent company of CoinDesk.

DCG suffered serious injuries from its exposure to the collapse of cryptocurrency hedge fund Three Arrows Capital in 2022.

In the interdependent cryptocurrency lending pool, DCG owes trading platform Winklevoss Twin Gemini about $900 million.

On Sunday, Gemini publicly reached out to DCG head Barry Silbert in an effort to recover funds owed to its users. Silbert is yet to respond, but a positive resolution of DCG’s issues is needed for the cryptocurrency industry to start the new year on a stable footing.

Another round of cryptocurrency-related job cuts was announced on Jan. 5, when cryptobank Silvergate Capital cut 200 jobs, around 40% of its workforce.

Silvergate Capital saw massive withdrawals in the fourth quarter as investors scrambled to cash out their crypto deposits following the crash of cryptocurrency exchange FTX in early November 2022.

Read more: FTX bankruptcy sees 80,000 UK cryptocurrency investors lose funds

Total deposits from digital asset customers on the banking platform fell to $3.8bn (£3.12bn) from $11.9bn at the end of the third quarter. That was a drop of about 68%.

The cryptocurrency market saw a surge in value on Monday, with the entire market capitalization up 3%.

Of the top 10 blue-chip cryptocurrencies, Cardano (ADA-USD) has performed best and is up nearly 17% in the past 24 hours, to $0.32 at the time of writing.

The second most valuable cryptocurrency, ethereum (ETH-USD), also saw a reversal in modest crypto price action during the holiday season, up 4.26% to $1,317.

Bitcoin (BTC-USD) has cleared the psychological $17,000 mark at $17,243 at the time of writing.

Watch: Web3: Venture Capital Continues to Flood into Cryptocurrencies, Outlier Ventures Head Says | The mile of cryptocurrencies

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