Many crypto firms have decided to lay off a huge number of their workforce, as the digital currency market continues to drop. The market on the global scale has reported a drop of $997 billion in the last 24 hours and is expected to go even lower by crypto experts.
The tumble began in April and has continued since then. Over the weekend, leading cryptocurrencies Bitcoin and Ether crashed to their lowest at 14% and 25% respectively.
Crypto lending firm BlockFi made a shocking announcement on Monday that approximately 20% of their workforce will be laid off due to a ""dramatic shift in macroeconomic conditions."
According to Bloomberg, BlockFi founders Zac Prince and Flori Marquez said in a blog post that extreme market conditions are a major contributing factor to this decision. Reassuring the company's client base, Prince, the chief executive officer tweeted that there will no changes observed in their service quality and all related platforms and products will 'operate normally.'
Similarly, the CEO of Crypto.com, Kris Marszalek, also went on Twitter to announce that the company has made the "difficult but necessary decision" to lay off around 260 of its employees.
The Singapore-based crypto exchange platform reportedly spent $700 million in November for the naming rights of the Staples Center in Los Angeles, home of the Lakers and Clippers, Fortune reported.
BlockFi and Crypto.com are not the only tech and finance related firms who are struggling to keep things afloat amid this massive sell-off. As per the Verge, companies like Klarna, Netflix, Tesla, Cameo, and Better.com have also announced similar reduction in their workforce, even Meta being a tech giant is pulling back on hiring to cut down cost.
The steady fall of Bitcoin and Ether had recently prompted Celsius, the largest crypto lending platform to pause withdrawals, swap and transfers with no particular timeline. Same was the case with Binance, a large crypto exchange, that halted withdrawals for three hours.
