Despite the ongoing relief rally in the crypto market, negative news seems to be never-ending. The latest to make it to the headline today is Gemini, as the crypto exchange company has reportedly cut down another 10% of its global staff according to a recent report published by
This latest headcount reduction is the crypto exchange’s third round of lay-offs in the past eight months. Its previous staff cutdown occurred last June following extreme market conditions. The company let go of a tenth of its staff. Weeks later, a report claimed that the company laid off an additional 68 employees, or about 7% of its workforce.
In the internal message disclosed by The Information today, Gemini co-founder Cameron Winklevoss wrote:
(…) it was our hope to avoid further reductions after this summer. However, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount.
Gemini is a New York-based
Over the past months, Gemini has been facing pressure following its engagement with the now-bankrupted crypto lender firm Genesis. A few days ago, the U.S. Securities and Exchange Commission (SEC)
In 2020, Gemini and Genesis collaborated to launch a lending program called Gemini Earn. The program allowed Gemini users to lend digital assets to Genesis and earn interest. According to the SEC, Gemini Earn raised billions of dollars worth of crypto assets from hundreds of thousands of investors.
Gemini is not the only company reducing headcount amid the downtrend in the crypto market. On Jan. 10,
Three days later, popular crypto exchange Crypto.com also
While crypto companies continue to announce layoffs, the crypto market has ignored the negative news. The total cryptocurrency market capitalization recently revisited the $1 trillion benchmark for the first time in months.