Crypto giants have different reactions to the bear market
Job cuts: While cryptocurrencies have been in freefall since late 2021, the repercussions are now being felt in job postings. In the world of tech and crypto, only Binance seems to be doing well.
Currently, there is a difficult international economic situation with rising inflation and the onset of a broader economic crisis. There is still a war in Europe. And. There is the fear of excessive regulation on cryptocurrencies.
Stablecoins are meant to be stable, as their name suggests. But they brought more fear than comfort.
Job cuts: Crypto platforms in trouble
Due to the current uncertainty, Bitcoin price is stuck in a range between $28,000 and $32,750. And now, job posting suspensions are happening in the crypto industry.
It was Coinbase that first caught the eye with the announcement of the temporary halt in recruitment and the cancellation of recently awarded positions. Even though Coinbase is the most popular exchange in the US, current market conditions would limit the application of their roadmap.
In this regard, LJ Brock, the Chief of Staff, said, “In response to current market conditions and continued efforts to prioritize business, we will be extending our hiring pause for new and replacement positions in a foreseeable future and will cancel a number of accepted offers. ”
Meanwhile, Gemini, another major exchange, made a similar announcement to Coinbase. They plan to reduce the current staff by 10%. Billionaire twins Cameron and Tyler Winklevoss split their workforce between traditional and cryptocurrency markets. This is in order to refocus more on the most critical issues of their business.
Frank Corva, Principal Crypto and Blockchain Analyst at Finder, said: “These layoffs and hiring freezes likely have more to do with the fact that the crypto and traditional markets are down and conditions finances are tightening in all areas. Crypto traders and employees are sitting tight as crypto markets and the crypto industry remain against the ropes.
The struggling tech sector
The situation is tricky for many companies. Tesla and its CEO Elon Musk want to cut its workforce by a tenth due to a gloomy outlook for the economy.
Convinced that a coming recession threatens the United States and the rest of the world, Musk reportedly contacted Tesla to suspend hiring and also told all Tesla teams to stop telecommuting and return to the office or quit their jobs. .
In 2021, nearly 100,000 employees worked for Tesla; breaches of contract could therefore be significant.
Binance: the only survivor?
On the other hand, Binance seems to be experiencing a totally different situation. The company continues to ride on good results both economically and legally with successful entries into France and Italy. Binance says they still have 900 vacancies globally.
This situation is a far cry from other crypto platforms that suffer from a crypto winter. So while Coinbase and Gemini seek to downsize, Binance is instead pursuing an offensive strategy to staff its workforce with additional workers.
Source: Binance Careers
On Twitter, an announcement was shared by the Binance US profile mentioning the recruitment. Dating from last June 3, this announcement was published as the decisions of Coinbase and Gemini were emerging.
Surprised by the opposite strategies of those adopted by Binance and those of Gemini and Coinbase, CoinGecko co-founder Bobby Ong wondered how the finances of certain exchanges are managed.
“We’ve only been in the bear market for a few months, and exchanges are laying people off and canceling jobs. How mismanaged are your finances and workforce? You are one of the most profitable sectors in cryptocurrencies, with gains in the billions over 2021.”
As Bobby Ong testifies, the situation is surprising, given the good economic health of Binance.
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