Crypto Giants Have Different Reactions to the Bear Market
Job cuts: While cryptocurrencies have been in free fall since the end of 2021, the repercussions are now hitting job offers. In the world of tech and cryptos, only Binance seems to be getting by.
Currently, there is a difficult international economic situation with inflation on the rise, and the beginnings of a broader economic crisis. There is still a war in Europe. And. There is the fear of overregulation on cryptocurrencies.
Stablecoins are supposed to be stable, as their name suggests. But they have brought more fear than reassurance.
Job cuts: Crypto platforms in difficulty
Due to current uncertainty, the price of Bitcoin is stuck in a range between $28,000 and $32,750. And now, suspensions of job offers are happening in the crypto sector.
First, it was Coinbase that attracted attention with the announcement of the temporary end of recruitment and the cancellation of positions that had recently been allocated. Even though Coinbase is the most popular exchange in the United States, current market conditions would limit the application of their roadmap.
In this regard, L.J. Brock the Chief of Staff said: “In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers.”
In parallel, Gemini, another major exchange, made an announcement similar to that of Coinbase. They plan to reduce by current staff by 10%. Billionaire twins Cameron and Tyler Winklevoss are separating their workforce into traditional markets and that of cryptocurrencies. This is in a bid to refocus more on the most critical issues of their company.
Frank Corva, Senior Crypto and Blockchain Analyst at Finder said, “These layoffs and hiring freezes likely have more to do with the fact that both crypto and traditional markets are down and that financial conditions are tightening across the board. Traders and crypto employees alike are sitting tight as both crypto markets and the crypto industry remain against the ropes.”
The tech sector in difficulty
The situation is delicate for many companies. Tesla and its CEO Elon Musk want to reduce its workforce by a tenth due to a gloomy outlook on the economy.
Convinced that an upcoming recession threatens the United States and the rest of the world, Musk has reportedly contacted Tesla to suspend hiring and has also told all Tesla teams to stop teleworking and return to the office or leave their jobs.
In 2021, nearly 100,000 employees worked for Tesla; contract terminations 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 surf on good results both economically and legally with successful entries into France and Italy. Binance say they still have 900 positions to fill globally.
This situation is far from other crypto platforms that are suffering from a crypto winter. Thus, while Coinbase and Gemini are looking to reduce their workforce, Binance is instead pursuing an offensive strategy to fill its workforce with additional workers.
Source: Binance Careers
On Twitter, an announcement was shared by the Binance US profile mentioning recruitment. Dating back to June 3, this announcement was published as the decisions of Coinbase and Gemini were emerging.
Surprised by the opposing strategies of those adopted by Binance and those of Gemini and Coinbase, CoinGecko co-founder Bobby Ong wondered how the finances of some exchange platforms are managed.
“We’ve only been in the bear market for a few months, and the exchanges are laying people off and canceling job offers. How poorly are your finances and workforce managed? You are one of the most profitable sectors of cryptocurrencies, with gains in billions over 2021.”
As Bobby Ong testifies, the situation is surprising, considering the good economic health of Binance.
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