Winter season has come and Crypto winter gets tougher. Many tech companies and crypto exchanges make their move to survive in this bear market. If they fail to survive, that will be bad news. They may run out of business.
Crypto exchange Bybit announces that they are going to lay off 30 of its workforce. The fall of crypto exchange FTX, lending platforms Voyager, Celsius, and BlockFi show the real picture of this bear market.
Crypto prices broke an all-time high and made a new high in 2021. Then the entire crypto market began to fall. Bitcoin is trading at around 17K. We have seen a lot of things during this time. It is just one year.
The Fed interest rates hit hard in the market. They keep raising interest rates and people move from risk-on assets to risk-off assets. They are trying to reduce the inflation rate which was a record high. We may not see positive change in the crypto market as well as the stock market unless macroeconomic factors change.
Due to macroeconomic factors and the crypto bear market, Bybit decides to slash 30% of its workforce. In a bull market, crypto exchanges had to expand their operations to meet the demand and support their business. Now in order to survive their business, they have to make tough decisions.
According to Bybit, they position themselves in a better way so that they can navigate this bear market and face challenges. They will continue their operation, and everything remains safe. They point out the crypto bear market for laying off their employees.
Recently crypto exchange Kraken did the same thing by cutting down 30% of its workforce. Not only Kraken, but also Coinbase, Crypto.com, and Huobi decided to do the same thing to face challenging situations in crypto winter.
Now there is a low search volume about crypto on Google. Trading volume in exchanges is low. Crypto exchanges cannot do what they did last year. That's reality, so adapting to the changing situation is a must.
In any business, if the owner fails to make the right decision in time, it becomes very difficult to deal with tough situations. If they can survive this bear market, they will definitely do better in the next bull run.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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I think this is going to be a continuing these over the next few months. In Thailand, I use the excellent coins.co.th who had an incredibly responsive helpline and chatbox, they also carried out transactions quickly between 7am and 10pm, 7 days a week but this has all recently changed. Now its closed on a weekend and paying in cash can take 24 hours before it appears on account, my guess is they have also cut staff to make savings.
If all this results in more efficient and streamlined operation where exchanges aren't just blowing through cash like there was no tomorrow, this can only be a good thing but it highlights the need for crypto businesses to operate sustainable business models and not just rely on the endless generation of new crypto tokens onto the markets.
Looks like it is happening all over the world. This is a tough time for businesses and people who get laid off. The company stops hiring. It is different to find a new job.
You brought up a good point and I completely agree with you. Crypto businesses have to focus on sustainable business models. In a bull market, it feels like everything is on top of the world. But everything falls down on the ground in a bear market.
There is a huge potential, but in order to get there, you have to survive first. It comes down to what you just said, a sustainable business model.
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The bear market is tough for everyone in the traditional and crypto markets. There just isn't that much cash laying around and the faith in exchanges has dropped a lot. With fewer people going into the exchanges, it also means their revenue has dropped. It just makes sense because there is not a need for so many employees right now.
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I was wondering why they hired so many people in a bull market when they know it would not be sustainable in a bear market. I guess, taking advantage of quickly expanding businesses and greed can be reasons.
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