The major cryptocurrency exchange, Blockchain.com, is set to conduct a huge layoff trimming about 25% of its workforce. About 150 employees are going to be terminated soon. The Blockchain.com workforce cut is attributed to the persistent crypto market crashes in recent months.
The exchange said that they are doing so to make up for several losses due to the ‘red’ trends in the market and $270 million in bad debts that were earlier lent to the former crypto domain lender, Three Arrows Capital. Blockchain.com also unveiled its plans to shut down its offices set in Argentina and also cancellation of expansion strategies in other countries. About 44% of the affected employees of this ‘Blockchain.com Unemployment’ scheme are from Argentina, another 16% from the United States and the remaining ones are from the rest of the world.
The Blockchain.com workforce cut brought back the number of employees to be equal to the ones that were in January 2022. However, earlier the company had rapidly expanded in the recent 6 months and grew from a relatively small team of 150 workers to over 600 of them. The crypto exchange firm is trying to initiate a fundraising campaign to mitigate the losses incurred due to the bankruptcy of Three Arrows Capital.
Crypto Market’s ‘Red’ Trend
As Blockchain.com slashes employees, the crypto market continues to fall. The major cryptocurrencies have been slumping today as the crypto crash session extends. The bleeding market metrics are available below.
- Bitcoin (BTC), the largest cryptocurrency, dipped by 4.33% and traded at $$22,652.80 today. The market capitalization of the crypto giant was $434.69 billion.
- Ethereum (ETH), the second largest crypto, dropped by about 6.46% and traded at $1,492.26 today. The market capitalization of ETH was $181.15 billion.
- Binance Coin (BNB), the major crypto exchange’s native token, slumped by 4.76% and traded at $255.83 today. The market capitalization of the coin stood at $41.03 billion.
- Cardano (ADA), the Yoroi Wallet hero, also lost massive value. ADA declined by 8.33% and traded at $0.4832 today. The market valuation of the crypto token was $16.3 billion.
- The meme-frenzy cryptos, Dogecoin (DOGE) and Shiba Inu (SHIB) lost 6.62% and 8.21%, respectively.
Blockchain.com workforce cut is another blow to the crypto space amid the bearish trend and various crypto lenders’ distraught.