Crypto Layoffs Signal a Long Downturn Ahead with ‘No End In Sight,’ Experts Warn

The startling crypto crash this week has many companies slashing their payrolls, while a small few are instead doubling down on investments.

On June 14, Coinbase, the first crypto company to enter the Fortune 500, announced that it was laying off 18% of its workforce—that means shedding about 1,100 full-time roles. In a blog post, CEO Brian Armstrong wrote that the company was planning “for the worst,” including for the likelihood of a “crypto winter” that “could last for an extended period.”

Elsewhere, Robinhood, Crypto.com, and many other companies have announced significant layoffs or hiring freezes. Some longtime experts say they’re getting flashbacks to 2018, when crypto startups laid off dozens of employees and the industry lay dormant for a couple of years. The current layoffs could foretell another extended crypto downturn and lead to fundamental shifts. A rebound could take years.
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“You’re probably looking at a tough period of at least a year or two where there’s a lot of crypto space that will be in limbo,” says Edward Moya, a senior market analyst at Oanda.

But other companies say that they’re sticking to their game plans of steady growth to prepare for the next bull period. “Because we hired carefully, we can keep growing regardless of market conditions,” FTX CEO Sam Bankman-Fried wrote on Twitter last week. “Sometimes, when others Zig, you Zag.”

Here’s why both trends are happening, and what they say about crypto’s future.

A rapid downfall

Many industry analysts have warned of a coming downturn for months. Crypto has gone through several boom and bust cycles since its inception, and many argue that its recent bull run was characterized by overly rapid growth based heavily on speculation. Many companies took preventative measures to protect against …read more

Source:: Time – Business

      

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