Job cuts: Crypto giants and the bear market

Cryptocurrency prices have been in free fall since the end of 2021, and now the effects are also being felt on vacancies. In the world of technology and cryptocurrencies, only Binance seems to be able to assert itself at the moment.

The international economic situation is difficult at the moment: inflation is rising, a general economic crisis is threatening, war is still raging in Europe and fears of over-regulation of cryptocurrencies are also rising.

As the name suggests, stablecoins are supposed to be stable. Lately, however, stack coins have created even more fear rather than security.

Job cuts: Crypto platforms are in trouble

Due to the current uncertainties, the Bitcoin price is stuck in a range between US $ 28,000 and US $ 32,750. In addition to the already difficult situation, there are now cuts in the crypto sector.

Initially, Coinbase attracted attention when the company announced that it would temporarily halt new hires and cut newly assigned positions. Despite the fact that Coinbase is the most popular crypto exchange in the United States, the current bear market greatly limits the company’s roadmap execution.

In this regard, Chief of Staff LJ Brock said: “In response to current market conditions and ongoing efforts to prioritize business, we will extend our layoffs in the foreseeable future for both new and replacements and withdraw a number of accepted offers.”

At the same time, Gemini, another major cryptocurrency exchange, also issued a statement similar to Coinbase. Gemini plans to reduce its current staff by 10%. Billionaire twins Cameron and Tyler Winklevoss divide their workforce between traditional markets and the crypto market. This is an attempt to put more focus on the company’s most important topics.

Frank Corva, senior analyst and blockchain analyst at Finder, said: “These layoffs and layoffs are likely to have more to do with the fact that both crypto markets and traditional markets are down and financial conditions are tightening everywhere. Traders and crypto industry professionals can only wait and see , as both the crypto markets and the crypto industry remain on the ropes. “

bear market. An image from BeInCrypto

The bear market creates problems for the technology sector

For many companies, the current situation is difficult. Tesla and CEO Elon Musk also want to reduce the workforce by a tenth because of the bleak economic outlook.

Musk is convinced that an impending recession threatens the United States and the rest of the world. Therefore, he asked Tesla to stop hiring new employees. Musk also instructed all Tesla teams to stop working from home and return to the office or resign. By 2021, Tesla had about 100,000 employees, so contract terminations could become significant.

Binance as the only surviving crypto company?

Binance, on the other hand, seems to be experiencing a very different situation. The company continues to achieve good results, both financially and legally, with its entry into the French and Italian markets. Binance said it still has 900 vacancies to fill around the world.

The situation is far from that of other crypto platforms suffering from the crypto winter. While Coinbase and Gemini need to reduce their workforce, Binance is instead pursuing an offensive strategy to fill the workforce with additional employees.

An image from Binance Careers

Binance US published a post on Twitter about the new employees. The announcement dates back to June 3 and was released as Coinbase and Gemini’s decisions to freeze hires were on the way.

A picture from Twitter

CoinGecko co-founder Bobby Ong expressed surprise at the contrasting strategies used by Binance, Gemini and Coinbase.

“We have only been in a bear market for a few months and crypto exchanges have already started firing employees and withdrawing vacancies. How badly are their finances and staff then managed? You are among the most profitable sectors in the field of cryptocurrency, with a profit of billions in 2021. “

As Bobby Ong clarified, the situation is surprising given Binance’s good financial health.

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