Gemini, the digital assets exchange owned by twin billionaire Winklebus, plans to lay off about a tenth of its employees at the last sign of how the strong slump in crypto markets has hampered the industry’s rapid growth.
The announcement on Thursday comes when the value of the digital assets market fell by about $ 2 billion from the peak in November 2021 to $ 1.3 billion, according to data Collected by the Financial Times.
“This is where we are now, in the phase of contraction that is stabilizing for a period of stagnation – what our industry calls ‘crypto winter,'” Cameron and Tyler Winklebus said in note For employees, what was first reported by Bloomberg.
Bitcoin fell more than 50% from its peak in November, while other small currencies suffered much more severe losses. At the same time, last month’s crash of the once-popular luna and terra tokens The merchants’ faith is shaky In crypto loan programs like “gamble”, which provided profitable returns.
Crypto traders tend to bet more actively on the market when it rises, said analysts and stock market executives. In light of the breadth and severity of the bear market, crypto trading volumes have declined sharply.
Spot trading volumes in the leading stock exchanges averaged about $ 750 billion a year, compared to $ 1.2 billion in 2021, according to data from The Block Crypto. Reducing lower volumes in commissions that benefit from the ease of transactions.
The Winklebus brothers, who founded New York Gemini In 2014, they said in their note to employees that the troubles in the crypto market “were further exacerbated by the current macroeconomic and geopolitical storm.”
The crypto industry flourished as central banks and governments poured liquidity into the global economy and people around the world were stuck at home during the rolling lock. However, investors have fled speculative assets this year, with shares of unprofitable technology companies and other risky bets also coming under heavy pressure as global central banks work to fight inflation.
Some investors are betting that the cryptocurrency downturn will be temporary and that innovations like Blockchain’s digital ledger technology will reshape finances.
Venture capital group Andreessen Horowitz launched a $ 4.5 billion cryptocurrency fund earlier this month, saying the crypto industry is entering a new “golden age” where “new talent, sustainable infrastructure and community knowledge” will spur rapid innovation.
Echoes this sentiment, e Winklebus Brothers He told employees, whom they called “astronauts,” that “the crypto revolution is in full swing” and that “its impact will continue to be profound.” However, they also noted that the gloom that has fallen in the crypto market is not expected to be overcome in the near future.
“We have asked team leaders to ensure they focus only on products that are critical to our mission and to assess whether their teams are the right size for the current and turbulent market conditions that are expected to continue for some time,” they said.
Winklevoss’s Gemini to lay off 10% of staff as ‘crypto winter’ sets in Source link Winklevoss’s Gemini to lay off 10% of staff as ‘crypto winter’ sets in