Gemini announces layoffs of 10% to survive "encryption winter"
This article comes fromDecrypt & The Block, by Stacy Elliott & Michael McSweeney
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
The ongoing slump in the crypto market is hitting workers in the industry again.
Billionaire brothers Tyler and Cameron Winklevoss, president and CEO of Gemini Trust Co., announced Thursday that the company will lay off 10 percent of its workforce to help the company weather the "encryption winter."
The brothers reiterated their belief that the "crypto revolution" is well underway, but said the current trajectory forced them to reassess their workforce size.
All physical offices of the company are closed and furloughed employees will have one-on-one meetings with their managers to discuss severance pay, the brothers wrote in the memo.
secondary title
Crypto Exchanges Slow Down as Market Slump Continues
The total global cryptocurrency market cap has fallen from a high of $2.9 trillion last November to $1.2 trillion today.
The current macroeconomic and geopolitical turmoil has exacerbated this situation. Inflation has hit 8.5%, the highest level since the 1980s, according to the Department of Labor. Meanwhile, the Russia-Ukraine conflict has been going on for more than three months.
Gemini is not alone in taking extraordinary measures to deal with current market conditions. Listed cryptocurrency exchange Coinbase (COIN) has also previouslyAnnounceAnnounce
The hiring freeze will begin in mid-May for a period of two weeks. “Going into this year, we planned to triple the size of the company,” Emilie Choi, the company’s chief operating officer and president, wrote in a blog post, “however, given current market conditions, we It would be wise to reassess employee needs against top priority business goals.”However, according to an official blog post published Thursday evening, Coinbase will cancel some accepted offers andExtension of the current moratorium on recruitment
, to adapt to the macro environment and the general volatility of cryptocurrencies.
The company said it was unclear how many offers would be withdrawn, but some exceptions would remain. Coinbase also did not specify how long the hiring pause would last.
Coinbase, the third-largest cryptocurrency exchange with $2.4 billion in trading volume in the past day, has lost more than 70% of its value since its IPO last April. As of press time, the company's stock price was $73.82 per share.
secondary title
Misfortunes never come singlyOn the day Gemini announced layoffs, the U.S. Commodity Futures Trading Commission (CFTC) stated thatwill sue the cryptocurrency exchange
. The CFTC accused Gemini of misleading the agency when it answered questions about futures contracts tied to bitcoin prices on Gemini’s digital asset trading platform, Bloomberg reported.
In a lawsuit filed Thursday in Manhattan federal court, the CFTC alleges that Gemini “made false and misleading statements about the operations of the Gemini trading platform and Gemini Bitcoin Auction” during meetings with CFTC staff from July to December 2017. ".
The agency said:
“According to the indictment, Gemini provided information to the CFTC directly and through DCM regarding the Gemini Trading Platform and the Gemini Bitcoin Auction, and certain statements and information communicated or omitted by Gemini were false or misleading, including: Contrary to the understanding whether the proposed bitcoin futures contract is vulnerable to manipulation. As the indictment states, Gemini personnel knew or should have known that the statements were false or misleading."
As Gemini announced at the time, Cboe’s cash-settled bitcoin futures leveraged price data from Gemini when it launched in December 2017. Cboe was not named in the indictment.
When contacted for comment, a Gemini spokesman told The Block: “Gemini has been a pioneer and supporter of prudential regulation since day one. For eight years we have been seeking permission, not forgiveness.” , and always doing the right thing. We look forward to proving that in court."
