Crypto Exchange Gemini Cuts 10% Of Its Workforce
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 mart visitor has reportedly cut lanugo flipside 10% of its global staff equal to a recent report published by The information citing an internal message.
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 pursuit lattermost market conditions. The visitor let go of a tenth of its staff. Weeks later, a report personal that the visitor laid off an spare 68 employees, or well-nigh 7% of its workforce.
In the internal message disclosed by The Information today, Gemini co-founder Cameron Winklevoss wrote:
it was our hope to stave remoter reductions without this summer. However, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other nomination but to revise our outlook and remoter reduce headcount.
Gemini is a New York-based cryptocurrency mart visitor founded by twins Cameron and Tyler Winklevoss in 2005. The visitor is backed by $423 million funding and provides crypto-related services, including providing a crypto wallet for storing digital assets.
Gemini’s Painful Months
Over the past months, Gemini has been facing pressure pursuit its engagement with the now-bankrupted crypto lender firm Genesis. A few days ago, the U.S. Securities and Mart Commission (SEC) charged Gemini over the so-called unregistered offer and sale of securities to retail investors.
In 2020, Gemini and Genesis collaborated to launch a lending program tabbed Gemini Earn. The program unliable Gemini users to lend digital resources to Genesis and earn interest. Equal to the SEC, Gemini Earn raised billions of dollars worth of crypto resources from hundreds of thousands of investors.
The SEC charges have labeled the program an “offer and sale of securities” that should have been registered with the U.S. regulator. Furthermore, Genesis filed for installment 11 bankruptcy protection last week, unable to pay when Gemini Earn users their loaned funds. Per Genesis’s bankruptcy filing, the visitor currently owes Gemini a total of $765.9 million, making Genesis its largest creditor.
The Exodus Series Continues
Gemini is not the only visitor reducing headcount tween the downtrend in the crypto market. On Jan. 10, Coinbase Global Inc. let go of well-nigh 1000 of its staff or well-nigh 20% of its workforce, making it the company’s third round of layoffs.
Three days later, popular crypto mart Crypto.com moreover announced that it was laying off 20% of its employees. Equal to Co-Founder & CEO of Crypto.com, Kris Marszalek, part of the company’s visualization to reduce headcount includes focusing increasingly on prudent financial management and positioning the visitor for long-term success over time.
While crypto companies protract to signify 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.