New Delhi: Major cryptocurrency exchange Blockchain.com has laid off 25 per cent of its workforce, around 150 employees, amid the global economic slowdown. The digital asset trading firm said it would close its Argentina-based offices and halt its expansion plans globally, CoinDesk reports. The crypto platform said that severance benefits ranging from four weeks to 12 weeks will be given to those who have been laid off.
The company, which recently disclosed a $270 million shortfall from borrowings from now-bankrupt hedge fund Three Arrows Capital, said the decision to cut the workforce was based on “harsh bear market conditions and the need to absorb financial losses”. middle is taken. (Also Read: Instacart’s Indian Origin Founder Apoorva Mehta Resigns From Online Grocery Delivery Company)
About 44 per cent of the fired employees are in Argentina, 26 per cent in the US, 16 per cent in the UK and the rest in other countries. (Also Read: 4 Cooperative Banks Face RBI Restrictions! Withdrawal Limit For Depositors Introduced)
Blockchain.com is also scaling down its institutional lending business, halting all mergers and acquisitions and halting efforts to expand the gaming and non-fungible token (NFT) markets.
Several crypto exchanges and lending platforms have reduced their workforce in recent months.
After laying off about 10 percent of its staff due to “turbulent market conditions” some time ago, crypto exchange Gemini laid off more employees in a second round of layoffs earlier this week.
Gemini may lay off more employees in the next round.
Last week, Devin Finzer, co-founder and CEO of non-fungible token (NFT) marketplace OpenC, announced that the platform was laying off about 20 percent of its total workforce.
Crypto lending firm Celsius Network, which recently laid off 150 employees, has filed for bankruptcy in the US amid extreme market conditions.
Popular crypto tokens such as bitcoin and ethereum plunged nearly 70 percent from their record highs amid the economic downturn as bankruptcy loomed.
Last month, cryptocurrency exchange Wald, which has halted all activity on its platform, decided to cut its headcount by about 30 percent.