As Bitcoin (BTC) dips I just got wind of some more FUD. In June, cryptocurrency exchange Crypto.com announced it was laying off around 260 employees. To put that into perspective, that's 5% of its workforce. The reason for the layoffs is due to the widespread downturn in the broader crypto market. However, the layoffs have not ended there.
The crypto market has been hit hard by plummeting valuations and a huge decrease in trading volume. Due to this the company has quietly let go of hundreds more employees since the initial layoffs! These new layoffs have not been publicized, and if you goo looking you can't find much info so it’s difficult to estimate their exact number. Crypto.com has been trying to coverup and limit information about the extent of these departures even within the company. Right now, CEO Kris Marszalek is refusing to answer questions about the total figure in a recent in-house employee-only town hall meeting...
Crypto.com is one of the most visible players in the crypto market, so would they be hiding this information to help or hurt markets? They have been in the public eye with Super Bowl ads starring LeBron and buying their own stadium when markets were good. Have these marketing stunts put them in greater financial stress than publicly known? Did they hire too fast or maybe they did not plan for a downturn in markets so soon.
There are so many questions I want answered. The Verge tried to get to the bottom of it. They talked to some sources within the company and where told the following.
People in the company recently noticed many employees disappearing from our internal slack or scheduled meetings.”
If people started to notice it has to be more people right? They even asked management and they were told the following,
“We were assured the layoffs would impact 5 percent, 260 employees only,”
I guess it could be confirmation bias, but still it's odd. After that the Verge was told,
“People in the company recently noticed many employees disappearing from our internal slack or scheduled meetings.”
What I'm seeing is a lack of internal transparency which leads to speculation or worry from external sources like me. If employees can only estimate the extent of this layoff I'm actual a bit worried too. I heard they increased their staff by approx. 50 percent since 2021. Since growth has faded those staff are viewed as costs to be reduced.
It's not the first crypto business to cut people, but it may be the first being less transparent about it. I just hope we don't see any more exchanges or projects fold because the market is already walking on pins and needles.
As always be cautious and take profit.
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It’s somehow expected that crypto markets will see some downtrend, like all the world economy. We cannot expect that thing will run fluently right now. Hopefully the major companies like Crypto.com, Binance and several other companies will withstand this pressure and will continue a relative stable workflow. As you said, people have to be cautious in such times, and think of granting themselves some profits, if possible.
Now that we have some adoption we need to start applying some common financial principles that might not have mattered in the past. Institutional investors use algorithms that trade off news and patterns which we did not have years ago. If you can't adapt to the new environment you will get burned.
We've found Crypto in your hashtags, reshared to @crypto.defrag
Thanks, what are your thoughts on the layoffs?
Crypto is like seasonal or holiday trade friend.
We see similiar patterns of hiring and laying off with holiday or summer student jobs.
When Crypto markets are busy there is more work and value to attend to so more people are hired and conversely when it is quiet.
We bullish on $CRO, it would be nice if their cards were available in more countries
Yeah the boom and bust need to be smoothed out it really gives markets a bad name.
5% announced but I have heard they were doing layoffs daily over the past few months. I honestly am worried for Crypto.com’s sustainability.
Me too that's why I started to look into it. I'm actually worried this may be happening at Coinbase too. These companies thought too short sighted and grew too quickly. Their management should be the ones that get laid off
I bought tokens on crypto.com before. It's under Cro in altcoins. I think I pay about $0.36 but now it's way lower !
I'm not saying there is anything wrong with them right now, but it's odd to see them so non transparent about it. I think they are trying to cover up something. How big of a coverup only time will tell.
I’m not a fan of their exchange or their big splash into the crypto market. When they first opened the exchange I asked my buddy who’s a crypto maniac and knows tons of info. He said to stay away it’s going to be a heavily manipulated token.
I have never used it or look into their token. It all felt a bit cooperate with all their high prices marketing. Don't get me wrong we need marketing and adoption, but if it all implodes it was not worth it.
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The fear is hope crypto.com is not heading towards bankruptcy
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That would be very bad.
Crypto.com also spent a ton on advertisement deals and I wonder if it's having an impact on what they can really provide but I do agree that transparency is an issue. Did these advertisements even give them a positive return on their money?
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