20% Of BlockFi Employees Lose Jobs Due To Crypto Market Crash

It appears that the current state of the digital market is hitting hard on the economy of certain crypto exchanges. The BlockFi cryptocurrency lending and exchange platform, Crypto.Com, and Gemini are a few examples to pinpoint.

According to BlockFi’s blog post by its co-founders, Flori Marquez and Zac Prince, around 20% of its 850+ staff capacity will be trimmed. But, again, this is due to the current state of the crypto market.

Justin Bennett’s Crypto Market Pullback Theory

Justin Bennett, a renowned cryptocurrency analyst, forecasts the downtrend continuation of the crypto market. In his speech, the gross value of these digital assets may plunge lower than a trillion dollars.

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He further stated that the overall chart tracking all cryptocurrency market capitalization tends toward a continuous bearish pattern. Bennett also cited that the $1 trillion price mark provides a good support level for the overall cryptocurrency markets.

Should this theory be correct, as stated by Bennett, most altcoins will feel the brunt of this market movement.

BlockFi Staff Capacity Laid Off

Drawing from the blog post, BlockFi had experienced some tough days in the past. However, its present condition is somewhat more challenging. This condition resulted from the dramatic shift in worldwide macroeconomic conditions.

In this regard, BlockFi needed to cut down on the staff capacity. The action is intended to pave the way for better expenses management while waiting for an imminent global recession.

The organization has recorded some ups in the management system, moving from a staff capacity of 150 to more than 850. But due to the current hitches in the cryptocurrency market, BlockFi deemed it appropriate to reduce its staff capacity. The post further cited that this dramatic macroeconomic pullback surfaced in the first quarter of 2022.

The affected areas by the firm’s activities are as follows:

• Marketing expenses
• Headcount growth
• Non-critical vendors
• Executive compensation

Furthermore, the organization cited that despite their action to reduce staff headcount, there’ll be no notable impact on their services.

Are There Some Exceptions?

Amid all these happenings, a few companies are yet expanding in their staff capacities, of which Binance is chief. For example, the world’s largest cryptocurrency exchange platform, Binance, is on a search for new talents. According to the CEO, Changpeng Zhao (CZ), the most appropriate time to get skills is in the winter season of digital currency markets.

At the 2022 Consensus conference, Changpeng Zhao cited that it is about time they acquired some more talents. He stated this regarding the current turbulence of the digital currency market. CZ also revealed that the platform is fast-tracked to a better Mergers and Acquisition activity.

Related Reading | Bitcoin Will Hit $100K In 12 Months, Ex-White House Chief Predicts, Despite Crypto Carnage

Furthermore, in his speech, he cited that the Binance carries careful moves regarding its expenses. Also, the platform has intentionally avoided enormous spending on promotions like the Super Bowl ads.

Featured image from Pexels, charts from TradingView.com