Crypto.com to lay off 20% of its employees as FTX contagion spreads further into the crypto market
Crypto winter has come for Singapore-based Crypto.com. The crypto exchange announced on Friday it would be laying off about 20% of its workforce, as the crypto industry continues to deal with the fallout of FTX. The latest layoff would be the company’s second in about six months after it reduced jobs in July last year to weather the storm of the economic downturn and rising interest rates.
Crypto.com is the latest in a series of crypto companies to cut staff due to inflation and the slowdown in the global economy. Just a few days ago, rival exchanges Coinbase and Huobi also announced plans to lay off about 20% of their staff. Reuters also reported that Genesis, too, had cut jobs, equating to 30% of its workforce, citing a source familiar with the matter.
Crypto.com’s layoff announcement comes as investors lose confidence in crypto exchanges amid concerns about reserves and solvency across the sector. According to a study conducted by Bankless, more than 450,000 bitcoins were moved from crypto exchanges and hot wallets to cold wallets in 2022.
In a statement, Crypto.com CEO Kris Marszalek said that the recent FTX collapse “significantly damaged trust in the industry.
“It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success,” he added.
Founded in 2016, Singapore-based Crypto.com is a pioneer of payments and cryptocurrency with a mission to accelerate the world’s transition to cryptocurrency. The startup is working towards this goal with its portfolio of consumer products, including the Crypto.com Wallet & Card App, the MCO Visa Card, Crypto Invest, Crypto.com Chain, as well as Crypto Credit.
As of 2022, Crypto.com had over 5 million customers. The exchange said it provides customers with a powerful alternative to traditional financial services through the Crypto.com App, the Crypto.com Card, and the Crypto.com Exchange. The Crypto.com Wallet allows users to buy, sell, and pay with cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Binance Coin (BNB), and Crypto.com’s MCO and CRO Tokens.