Gemini crypto exchange has announced its intention to cut down on the number of its employees by 10%. A report from the Information hinted that this is the third round of layoffs in Gemini within a period of 8 months.
Cameron Winklevoss, President, and Co-Founder of Gemini gave reasons why the company decided to reduce its workforce. He emphasized that the industry’s current financial challenges, together with fraud committed by dishonest players, were what led to the layoffs.
Meanwhile, Gemini has become embroiled in Genesis’s bankruptcy as a result of its investors’ funds remaining in the Gemini Earn program. The program was designed to allow Gemini users to lend their crypto assets through Genesis and earn up to 8% in interest. Subsequently, Gemini amassed $900 million from its customers by the time it ceased operations in November.
The $900 million fund has since become a source of contention between the two companies. However, the program was discontinued shortly before Genesis filed for bankruptcy in the United States.
The layoffs of employees in the industry seem to be the recent trend. Crypto companies like Crypto.com, SuperRare Labs, and ConsenSys have earlier stated their intentions to lay off employees due to prevailing market conditions.
Attempts to Revive the Industry?
The crypto market can be revitalized through several means including regulation. Governments and regulatory bodies can provide clear guidelines and regulations for the crypto market. This can boost investor confidence and attract institutional investors. For example, the Securities and Exchange Commission (SEC) said it would intensify efforts into the probe of exchanges’ reports.
Secondly, new and improved technologies, such as faster and less expensive transaction processes, can aid in attracting new investors and users to the cryptocurrency market.
Furthermore, investments in Blockchain projects with strong fundamentals and a proven track record can foster the trust and confidence required for the crypto market to recover. In line with this, SkyBridge founder, Anthony Scaramucci has announced his intentions of supporting Brett Harrison’s new crypto software firm with funding.
Finally, increased education and awareness about the potential benefits and risks of investing in cryptocurrencies can aid in attracting new investors and users to the market. To this regard, Vitalik Buterin, Co-founder of Ethereum has said he remains bullish while setting his milestones for 2023. Buterin said he plans to reach the “basic roll-up scaling” milestone in his roadmap diagram.
