Crypto Firms Cut Back on Hiring During Market Slump
Cryptocurrency firms have slammed the brakes on their spending spree in response to the continuing crypto price slump.
In the past few weeks, Coinbase Global Inc., the largest American crypto exchange, rescinded offers to employees who accepted jobs and said it would slow its hiring pace.
Another crypto exchange, Gemini Trust Co., cut 10% of its staff, citing the effects of the market downturn.
After hiring doubled from November to April, crypto firms slowed hiring in May, according to data collected by Manpower Group.
The top three employers in the crypto space as of last month were Block Inc., SQ -6.15% Coinbase and Gemini, according to ManpowerGroup.
The Federal Reserve’s interest-rate increases have contributed to a market selloff, with speculative assets being hit the hardest. Since November, bitcoin has fallen 55% and the entire crypto market has dropped 59%.
That selloff has lowered the volume of crypto trading, and it is forcing some companies to work to adjust, said Kavita Gupta, founder of the investment firm Delta Blockchain Fund.
“Companies that went public or expanded during the high-peak time and did not figure out their balance sheet for three years of cash flow have to tighten their belt,” she said.