Crypto firms have announced massive layoffs in recent days due to the sharp drop in digital currencies. In recent years, a lot of money went to crypto companies and they grew strongly, also in terms of personnel.
Crypto exchange Coinbase reports that it will cut one in five jobs. The same goes for cryptocurrency platform BlockFi. At trading platform Crypto.com, 5 percent of the jobs will disappear, at industry peer Gemini Trust this will happen with 10 percent of the jobs.
Not all crypto companies are pessimistic about the situation. CEO Changpeng Zhao of crypto exchange Binance announced earlier this week that he was hiring more people. Binance is also actively looking for potential acquisitions.
The decline of cryptocurrencies such as bitcoin and ether is related to, among other things, higher interest rates. The investments in digital currencies are seen as risky by many people and if there are alternatives to earn money with less risk, it depresses the prices of the digital currencies.
Bitcoin’s value fell by more than 10 percent in the past 24 hours and by 22 percent in the last week. The currency is now at its lowest level in a year and a half. At the beginning of the year, 1 bitcoin was still worth more than double: 48,000 dollars (more than 46,000 euros). Ether, the second-largest cryptocurrency, lost more than a third of its value in the past week.