The U.S.-based crypto exchange cited the crypto industry’s sustained downturn and macroeconomic turmoil as reasons for reducing its staff.

Key Takeaways

Crypto exchange Gemini announced today that it would be cutting approximately 10% of its workforce.
The exchange cited the prolonged crypto downturn and the “macroeconomic and geopolitical turmoil” as reasons.
Last month, Coinbase also said it would slow down hiring, meaning it too has been affected by the current crypto bear market.

Share this article

Gemini, the crypto exchange and custodian run by the billionaire twins Cameron and Tyler Winklevoss, is cutting 10% of its workforce in a bid to survive the crypto market slump.

Gemini Makes First-Ever Layoffs

Gemini seems to be capitulating to the prolonged crypto bear market.

In a Thursday morning blog post, one of the largest U.S-based crypto exchanges, Gemini, announced that it would be parting ways with approximately 10% of its employees to reduce costs as the crypto market undergoes its seventh consecutive month of falling prices.

“This is where we are now, in the contraction phase that is settling into a period of stasis—what our industry refers to as ‘crypto winter,’” the twins said in the open letter to their employees. “This has all been further compounded by the current macroeconomic and geopolitical turmoil,” they added, highlighting that Gemini was not alone in the current situation.

Cryptocurrency prices have been trending down ever since the market reached a peak valuation of $3 billion in November last year. As is customary, falling prices typically lead to lower interest among retail investors, resulting in suppressed trading volumes and therefore lower revenues for crypto exchanges like Gemini.

Interestingly, while Coinbase has signaled its intention to slow down hiring, Gemini is so far the only high-profile crypto business to start trimming its workforce. Despite the seemingly dire market conditions, money has kept flowing into the industry, with venture capital firms like Andressen Horowitz raising a record-breaking $4.5 billion fund earlier in May, Binance Labs raising $500 million, and multiple crypto startups raising north of $350 million per round at multi-billion dollar valuations.

According to today’s blog post, Gemini expects the market to eventually settle down to “a new equilibrium that is higher than before.” Historically, the industry has been growing and shrinking in cycles, with every subsequent phase birthing new trends and narratives that onboard more users and investors than the previous. Gemini sees the current contraction phase as “an opportunity to double-down” on its strengths so that it may come become a “catalyst of innovation” in the crypto market’s next growth cycle.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Recommended News

Read More