Cryptocurrency exchange Gemini, owned by the Winklevoss twins, has announced a new reduction in staff, marking the third round of layoffs in just eight months. In a memo released Monday, founders Cameron and Tyler Winklevoss explained the situation, saying they are being forced to take this action due to pressure in the industry "because of bad actors."
According to the memo, the company is cutting 10% of its staff, which means that the number of employees has been reduced to 630-700. This latest staff cut comes after those made in June and July of last year.
The crypto world is restructuring
The crypto winter continues to affect the cryptocurrency industry, with a new victim, Gemini. However, it is not the first time that a crypto company has had to slash its workforce. This cut comes after the fall of one of the largest exchanges in the world, FTX, which filed for Chapter 11 bankruptcy, and a loss of confidence in the industry.
SuperRare Labs CEO John Crain recently announced that the company would be cutting its workforce by 30%. Crain has said the cut is necessary due to the company's unsustainable growth and has provided reassuring words about the company's future.
Among those most affected in the industry, Coinbase also stands out, which has announced its forecasts of additional layoffs, after having already laid off 1,260 employees in 2022. According to Brian Armstrong, CEO, and co-founder of the company, the company has made the difficult decision to lay off around 25% of its global workforce, representing a total of more than 950 employees.
Ultimately, the crypto sector is facing a continued reduction in its workforce due to harsh market conditions. In order to stay afloat, many projects have chosen to optimize their resources through massive layoffs.
However, Binance has surprised by announcing plans to hire 30% more staff in the next year, amid economic uncertainty and the wave of layoffs in the world of cryptocurrencies. According to Binance CEO Changpeng Zhao, this recruitment expansion will focus on key areas such as product development, regulatory compliance, and customer support, reflecting his confidence in the future of the crypto market and his commitment to developing and improving the platform.
Unlike other companies in the crypto market, such as Gemini, who have announced new layoffs, Binance has not considered downsizing, as it would seem that their goal is much larger than the cost of their employees.
How the Winklevoss are playing their cards in the bear market
Genesis Global Capital, LLC has filed for Chapter 11 bankruptcy in an attempt to restructure its finances and recover user assets. However, Cameron Winklevoss, one of the twins known for being advocates of blockchain technology and cryptocurrencies, has expressed his dissatisfaction with the lack of fair bidding by the parent group, Digital Currency Group (DCG), and its CEO, Barry Silbert. Winklevoss plans to take legal action against Silbert and DCG if they don't offer a fair solution to Genesis creditors.
Gemini has also faced a lot of pressure due to a high-profile dispute with cryptocurrency firm Genesis, related to a product the two companies jointly offered. Despite these challenges, the Winklevoss twins say they are committed to continuing to invest in Gemini and their team, with the goal of further growth in the cryptocurrency industry.
However, this layoff announcement is a reminder of the uncertainty and volatility that still exists in the cryptocurrency market. As the industry continues to evolve, we are likely to see more change and adaptation from the leading companies in this field.
In conclusion, Gemini's announcement of a further downsizing is a sign of the difficulties currently facing the cryptocurrency industry, and a reminder that much remains to be done to stabilize the market and ensure the safety and confidence of the investors. However, the Winklevoss twins remain committed to further investing in the platform and their team, with the aim of continuing to grow in the cryptocurrency industry.