Bitpanda has announced the layoff of 730 people out of just over 1,000 employees, faced with a crypto bear market that surprised many startups that were not financially ready to face a drastic drop in crypto trading activity.
The trading platform, backed by PayPal co-founder Peter Thiel, says that the “difficult decision” was taken so that the company would remain “financially healthy.” Last August, Bitpanda reached a valuation of more than $4 billion after raising $260 million during its Series C funding round. The funding allowed the company to expand its headcount. (1)
These crypto startups are, of course, not the only ones laying off staff; as Reuters reports, the cryptocurrency exchange BitOasis, located in the United Arab Emirates (UAE), has also laid off several employees.
Not to mention the crypto platform Voyager Digital, which was exposed to more than 660 million dollars to the fund Three Arrows Capital (3AC), is currently in difficulty.
Unlike others, such as Binance, Kraken, or Ripple, companies in turmoil are doing well during this difficult economic situation. They announce that they are recruiting thousands of people thanks to their financial reserves because of the sudden arrival of a crypto bear market.
A crypto sector is now waiting to see what direction the Bitcoin price will take in the medium term.