Gemini, the crypto exchange founded by billionaire twins Tyler Winklevoss and Cameron Winklevoss, announced its first ever job cuts. The announcement came after months of crypto selling that had not shown any signs of reversal. According to Bloomberg’s internal memo, around 10% of the current staff will be laid off.
Phase of Contraction
The brothers addressed their employees in a memo. They acknowledged that the industry had entered a state of “crypto Winter” which refers to prices remaining bearish for a certain period of time. This led to the company’s current state if stasis.
Low trading volumes during bear markets can have a significant impact on exchange revenues as trading fees are a large part of their revenues. Many firms had to reduce their staff or close down because of the decline in interest in digital assets in 2018.
Gemini is a privately owned company and therefore cannot release the number of employees it employs. LinkedIn reports that the exchange has currently 1038 employees. An increase of 10% in staff means that over 100 employees will be out of work. The company will provide them with health benefits and “separation packs”.
The twins stated that due to “turbulent markets conditions that are likely not to cease for some time”, the company will adjust it’s business strategy accordingly. They will also narrow its focus to products that are essential to its mission. Although they acknowledge that it is difficult to cut staff, the twins believe it will make the company better over the long-term.
The popular cryptocurrency exchange based in New York had a valuation of up to $7B after raising $400M in a November funding round.
Gemini Is Not Alone
Gemini isn’t the first major exchange to announce massive layoffs during periods when crypto assets are struggling to rebound.
Bitmax, an African-based exchange, laid off 25% of its staff. Robinhood, the popular retail trading app, also announced that it would lay off 9% of its full time employees. Vlad Tenev, CEO of Robinhood, stated that the principal reason for the reductions was “duplicate jobs and job functions”.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.