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• Layoffs in response to the bear market
• Kris Marszalek remains convinced of the company’s vision
• Regain investor confidence: more transparency on crypto exchanges
Following Genesis Global Trading, Huobi, Blockchain.com and Coinbase, Singapore-based crypto exchange Crypto.com has now announced a significant reduction in its workforce. However, the number of employees currently employed by the crypto exchange has not been confirmed. According to research by CoinDesk, between 3,500 and 4,500 people currently work for the crypto exchange, which would mean between 700 and 900 employees would be affected by the layoffs.
Already in June last year, at least five percent of the employees were dismissed as part of a downsizing and restructuring. However, the numbers are different here: In an interview with Decrypt (anonymously), a senior employee made allegations against the company, saying that significantly more employees than advertised were laid off in June, and that the remaining employees were promised job security. Furthermore, the company catalogs should have been removed internally at the time, so that employees could no longer see the actual number of redundancies. “The company is paring down to the bare minimum to survive what is likely to be a long bear market – the internal initiatives are about saving every penny,” the anonymous insider sums up to Decrypt.
After FTX bankruptcy: Crypto.com reacts to economic slowdown
Crypto.com was still pursuing an ambitious growth course at the beginning of last year, supported by the rapid development of the crypto sector. With the help of the cuts in July, the company also wanted to position itself for the difficult phase of the economic slowdown that followed in the summer. Kris Marszalek wrote to employees in January that it was possible to ensure the existence of the crypto exchange even during the crisis.
However, with the bankruptcy of the crypto exchange FTX, the situation has worsened dramatically, because investors’ confidence has been shaken for a long time. The managing director emphasizes that the focus is on “careful financial management” – certainly also in relation to the disastrous conditions at FTX and the allegations of fraud against former FTX boss Sam Bankman-Fried.
The managing director wrote to his employees that these were purely operational redundancies. All employees affected by the cuts have already been informed. However, the entire management team remains committed to the company’s vision, concludes Kris Marszalek, “as well as our unique position in the industry as a leader in compliance, security and privacy. We have a momentous year ahead of us as we continue to help restore trust in our industry and further expand our services in markets around the world.”
Restoring Investor Confidence: Crypto Exchanges Show More Transparency
Crypto.com already took a measure to restore investors’ confidence in the crypto industry in December: the publication of a so-called “Proof of Reserves”. In this, the international audit firm Mazars Group Crypto.com certifies that customer funds in Bitcoin, Ethereum and USD Coin are more than 100 percent covered. Other crypto exchanges such as Binance, Huobi and CoinEx have already taken this step and published hash trees and addresses of their reserve certificates.
Gearing must be between 2 and 20
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