Introduction
The last few months have been incredibly tough for the crypto industry. With bitcoin’s price plummeting and big names like BlockFi and Coinbase laying off staff, it’s been a challenging time. In this blog post, we will explore the recent layoffs in the crypto industry and what they mean for the future of the industry. We’ll also look at some of the issues that have led to these layoffs and what companies are doing to try and combat them. If you are interested in the rise of Bitcoin use in business, read on.
About the Worst Layoffs of BlockFi, Coinbase
BlockFi and Coinbase, two of the largest cryptocurrency companies, have seen the worst layoffs in the industry. BlockFi laid off 30% of its staff, while Coinbase laid off 10%. This is a major blow to the cryptocurrency industry, which has been struggling to find its footing after the 2017 bubble burst.
The layoffs come as a surprise to many, as both BlockFi and Coinbase had been expanding their operations in recent months. BlockFi had raised $50 million in a Series C round of funding just last month, while Coinbase had been valued at $8 billion after its latest funding round.
It is unclear what exactly caused the layoffs, but it is likely due to the current state of the cryptocurrency market. After reaching all-time highs in December 2017, prices have been on a steady decline, with no end in sight. This has led to a decrease in demand for cryptocurrency products and services, which has put pressure on companies like BlockFi and Coinbase.
The layoffs are a sign that the cryptocurrency industry is still struggling to find its place in the world. While there is still immense potential for growth, the current market conditions are making it difficult for companies to survive. It will be interesting to see how these companies fare in the coming months as they attempt to weather this storm.
What causes BlockFi, Coinbase to see the largest Layoffs in crypto?
Crypto startups BlockFi and Coinbase are among the companies that have been hit the hardest by the ongoing bear market in the crypto industry, with both firms announcing major layoffs this week.
BlockFi, a New York-based startup that provides loans and other financial services to cryptocurrency investors, is laying off about 30% of its staff, according to a report by The Block. The company has raised more than $50 million from investors such as Galaxy Digital Ventures and Mike Novogratz’s Galaxy EOS VC Fund.
Coinbase, meanwhile, is reportedly planning to cut up to 10% of its workforce, or about 50 employees. The San Francisco-based company is one of the most well-funded startups in the crypto industry, with investments from firms like Andreessen Horowitz and Tiger Global Management.
The layoff announcements come as the price of Bitcoin continues to languish below $4,000 and the overall market for digital assets remains relatively subdued. Many crypto startups have been forced to tighten their belts as a result of the prolonged downturn.
Are the darkest days of the cryptocurrency winter over?
The past year has been tough for the cryptocurrency industry. Bear markets, scams, and hacks have taken their toll. Even some of the most well-funded and established companies have had to lay off employees. BlockFi and Coinbase are two of those companies.
BlockFi is a lending and borrowing platform for cryptoassets. In July, they laid off 6% of their staff. And in December, they announced that they would be cutting another 10%. That’s a total of 16% of their workforce that has been let go in just six months.
Coinbase was among the most popular and quite well bitcoin exchanges. They laid off 30% of their staff in August 2018. And in January 2019, they announced that they would be laying off an additional 15%. That’s a total of 45% of Coinbase’s workforce that has been let go in less than a year.
So, is the worst part of the crypto winter over? It’s hard to say. The industry is still facing many challenges. But it seems like the layoffs have slowed down for now.
Conclusion
It’s been a tough few months for the crypto industry, with BlockFi and Coinbase both announcing major layoffs. BlockFi is cutting 30% of its workforce, while Coinbase is laying off up to 100 employees. This is despite both companies reporting strong growth in 2020. The crypto industry is still young and volatile, and it remains to be seen how these companies will weather the current downturn.
