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Crypto Companies Downsizing During Bear Market, But Binance And Kraken on Hiring Spree

In June 2022, the cryptocurrency market dropped below the $1 trillion mark —$890 billion at the time of writing. This is the first time since January 2021 that the market goes below the trillions. Several cryptocurrency companies, especially exchanges, are feeling the pain of the ongoing bloodbath in the market and have decided to downsize their staff in order to prepare for the upcoming crypto winter.

Coinbase Slashes 18% Of Staff

On June 14, leading US crypto exchange Coinbase announced cutting almost 20% of its staff due to the current market downturn. 

CEO Brian Armstrong took to Twitter on Tuesday to announce that employees affected by the decision would receive an email notifying them that they no longer have access to Coinbase systems. This was “the only practical choice —said Armstrong in a letter— to ensure not even a single person made a rash decision that harmed the business or themselves.”

Overall, Coinbase’s decision of slashing 18% of its workforce comes after encountering financial turmoil; Coinbase shares have fallen dramatically by 3/4 during the first months of 2022, and the firm reported a $430 million loss in its Q1 financial report.

During that period, Coinbase went on a massive hiring spree during the extent of the bullish market and also spent millions of dollars on advertisements. “We need to be more mindful of costs as we head into a potential recession,” Armstrong tweeted.

Besides reducing its headcount, Coinbase also rescinded several accepted job applicants before they could start their roles. In the letter, Armstrong said that affected individuals would be connected with open positions at other crypto firms through the recruitment platform Talent Hub.

Crypto.Com, BlockFi, Gemini Joining the Firing Wave

Coinbase wasn’t the only company slashing its headcount. The crypto market’s rocky conditions, combined with a seemingly US economy being dragged into a recession period, have made several well-known crypto companies reconsider costs and reduce work staff.

Singapore-based crypto exchange Crypto.Com was one of the most active firms in the space throughout 2021 and early 2022, going all out on sponsorships, buying NBA stadium rights, and hundreds of millions in advertisements.

In March, the firm paid $700 million to become an official crypto sponsor of the FIFA World Cup Qatar 2022 and paid Matt Demon $100 million to become its brand ambassador and promote the exchange in a Super Bowl Commercial. On June 10, CEO Kris Marszalek announced the firm laid off over 250 employees or roughly 5% of its workforce.

Before Crypto.com, Winklevoss-led Gemini announced reducing 10% of its workforce, while BlockFi reduced its headcount by over 20%. Crypto companies in Latin America are downsizing too, with Bitso —Mexico’s largest exchange— firing over 10% of its staff and Argentinian BuenBit reducing almost half of its workforce.

Hopium: Bitcoin and Kraken On Hiring Spree

While most companies are joining the firing fever, Binance announced they have 2000 open roles, from data research, communications, business development, and more. 

And Kraken has over 500 roles to fill this year. 

Changpeng Zhao, CEO of Binance, said the firm has kept on growing despite market conditions and low trading volume from retail investors, mostly thanks to not spending millions of dollars on massive advertisement boards or buying sports stadium rights like other crypto companies. “If we are in a crypto winter, we will leverage that, we will use that to the max,” he said in an interview.

Both Binance and Kraken believe bear markets are great opportunities to build, grow and make businesses.

“It’s once again time to build. It’s time to remember why we’re doing this: The Mission of bringing financial freedom and inclusion to the billions of people suffering from financial exclusion, hyperinflation, and a broken system that disproportionately leaves the poor out in the cold.” Reads a blog post from Kraken.

In early May, Binance was a member of the 18 equity investors who backed Elon Musk on his bid to take over Twitter. Changpeng Zhao called it “a small contribution to the cause.”

But Crypto is Dead (Again), Says the Media

Crypto companies downsizing amid harsh market conditions is not uncommon. In 2019, several well-known startups, exchanges and related companies such as Circle cut a slice of their workforces in order to focus on growth and product development. 

Naturally, corporate media is declaring Bitcoin and crypto dead (again) although this time with less frenziness. The same headlines from 2016, 2018 and 2019 are appearing again in 2022, but with a small spin, adding a “but why” at the end or asking crypto experts and digital asset managers for their opinions on the market.

The post Crypto Companies Downsizing During Bear Market, But Binance And Kraken on Hiring Spree appeared first on CoinCentral.

The Wolf of Wall Street: Investors Will ‘Almost Certainly’ Profit by Hodling BTC for 3 years

The popular public figure Jordan Belfort (better known as “The Wolf of Wall Street”) advised investors to look at bitcoin as a long-term investment. In his view, those who hold the asset for over 36 months will most probably make some profits. Belfort’s Crypto Guidance Jordan Belfort – the infamous stock broker whose story inspired::Listen

The popular public figure Jordan Belfort (better known as “The Wolf of Wall Street”) advised investors to look at bitcoin as a long-term investment. In his view, those who hold the asset for over 36 months will most probably make some profits.

Belfort’s Crypto Guidance

Jordan Belfort – the infamous stock broker whose story inspired Martin Scorsese’s film “The Wolf of Wall Street” – has not always been kind to the primary cryptocurrency. In 2018, he opined that bitcoin is based on the Great Fools Theory, and investors should get out of its ecosystem before losing all their money.

Amidst the bull run in the spring of 2021, though, Belfort totally changed his stance and predicted that the asset could reach $100,000 by the end of the year.

He doubled down on his support during his most recent interview for Yahoo Finance. He praised its limited supply of 21 million coins ever to exist, claiming that as inflation keeps rising, bitcoin will “start to trade more like a store of value and less like a growth stock.”

“The Wolf of Wall Street” also thinks the leading digital asset could be an appropriate investment tool as long as people have “diamond hands” and do not sell it for a period of 3-5 years (even though price fluctuations will imminently occur):

“If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of bitcoin are really strong.”

Subsequently, the American opined that bitcoin is still in its early days, which is why it is normal to correlate with the NASDAQ and tech stocks and not trade as a hedge against inflation (similar to gold).

“There is no real institutional ownership in bitcoin, for instance, you don’t have a teachers pension fund owning bitcoin for a ten-year hedge, it’s not like that yet,” he added.

Jordan Belfort
Jordan Belfort, Source: BBC

The Dangers of the Crypto Industry

Apart from bitcoin, Belfort gave his two cents on how people should protect themselves from cryptocurrency scams. Compared to traditional finance, the digital asset sector lacks comprehensive rules, which explains why sometimes “people are getting slaughtered.”

“In crypto, you can go out and raise money, but there is no disclosure, and every time there is no disclosure, it always ends badly,” he stated.

He advised investors to beware when dealing with a certain cryptocurrency project and get familiar with its executive team. Belfort believes that a protocol with unknown owners should be considered a huge concern.

Lastly, he warned people to check the utility of the projects they want to invest in. If the idea behind a particular enterprise works better from a centralized server, “I would probably not get involved,” he said.

Crypto Companies Downsizing During Bear Market, But Binance And Kraken on Hiring Spree

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