Blockchain.com is joining a handful of other crypto firms that have cut jobs while slowing its expansion.
As has been widely reported, Blockchain.com will let go approximately 150 employees or about 25% of its staff while shuttering an office in Argentina and slowing growth of employees in several countries including the UK and the US.
Blockchain.com is digital asset exchange that claims to service over 80 million individuals (37 million verified users) in 200 countries. Blockchain.com reports over $1 trillion in transactions since its founding in 2011. Coinmarketcap currently claims that Blockchain.com is 51st in its ranking of crypto exchanges.
While Blockchain.com has been rather quiet about its intent to slash the number of employees, its founder and CEO Peter Smith remains bullish about crypto markets, recently tweeting that we have “seen many crypto winters before.”
But this crypto winter is a bit different as it arrives during a serious economic downturn where traditional markets have dropped as well. The volatility and missing protocols for managing risk and leverage have scraped the veneer off of multiple firms like Voyager Digital, Three Arrows Capital (3AC), and Celsius Network. Each have effectively collapsed. Other firms have struggled to regain their footing with BlockFi receiving a bailout from FTX.
While cutting headcount is standard operating procedure during an economic slowdown, especially when some firms need to cut their burn rate, a more important question is whether there is another shoe to drop – or is this it. Is all of the bad news out? Or is there another crypto firm struggling to keep afloat? That is unknown.
What is clear is that firms that incorporate better risk management controls, commonplace in almost all traditional financial services firms, have a far better chance to survive any downturn – or crypto winter.