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Rising trend of Job Cuts in Crypto firms amid bear market and Global Economic Slump

Currently, the international economic situation is challenging, with rising inflation and the beginnings of a bigger economic crisis. In Europe, there is still a battle raging between Ukraine and Russia. And overregulation of cryptocurrencies is a concern.

Not even the ‘Stable’coins, which are supposedly designed to be stable and provide assurance for the price, have shown that the market is unpredictable! They have instilled more terror than assurance.

Crypto platforms are in trouble, resulting in job losses.

Due to present uncertainties, Bitcoin’s price is currently between $28,000 and $32,750. In the crypto sector, job offers are currently being suspended.

Coinbase was the first to draw attention when it announced the temporary end of recruitment and the cancellation of newly assigned posts. Even though Coinbase is the most prominent exchange in the United States, current economic conditions would make its roadmap impractical to implement.

“In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers,” stated L.J. Brock, Chief of Staff.

Simultaneously, another large exchange, Gemini, issued a similar announcement to Coinbase. They intend to cut 10% of their current workforce. Cameron and Tyler Winklevoss, billionaire twins, divide their labor into established markets and cryptocurrency. This is to refocus more on their company’s most pressing concerns.

“These layoffs and hiring freezes likely have more to do with the fact that both crypto and traditional markets are down and that financial conditions are tightening across the board. Traders and crypto employees are sitting tight as both crypto markets and the crypto industry remains against the ropes.”

The broader tech industry is in trouble

Many businesses are in a precarious situation. Due to a bleak economic forecast, Tesla and its CEO Elon Musk intend to cut their employment by a tenth.

Musk has reportedly asked Tesla to freeze hiring and has also urged all Tesla teams to cease remote working and return to the office or resign their positions, believing that an impending recession poses a serious threat to the United States and the rest of the world.

Tesla had employed roughly 100,000 people in 2021. Thus contract terminations might be considerable.

Many tech unicorns in India have fired many employees this year already.

Job cuts among India's Startup unicorns. Source: ETresearch
Job cuts among India’s Startup unicorns. Source: ETresearch

There are exceptions though

Binance, on the other hand, appears to be in a very different situation. With the successful entry into France and Italy, the company enjoys good financial success. Binance claims to have 924 open opportunities throughout the world.

Binance job openings
Binance job openings. Source: Binance

This is in stark contrast to other crypto exchanges that are experiencing a crypto winter. Consequently, while Coinbase & Gemini are looking to shrink their workforces, Binance is adopting an offensive approach to increase its employment.

The Binance US profile sent a notice on Twitter about recruitment. This declaration was made on June 3rd, just before Coinbase and Gemini announced their decisions.

CoinGecko co-founder Bobby Ong was surprised by the disparities between Binance’s and Gemini’s, and Coinbase’s tactics, and he pondered how the finances of other exchange platforms are managed.

“We’ve only been in the bear market for a few months, and the exchanges are laying people off and canceling job offers. How poorly are your finances and workforce managed? You are one of the most profitable sectors of cryptocurrencies, with gains in billions over 2021.”

The scenario is shocking, as Bobby Ong testifies, given Binance’s strong financial position.