Weakened by the serious crisis of confidence that has been shaking the crypto market for several weeks, several crypto exchange platforms are cutting staff. A policy that consists for them in reducing the extent of the crisis on their operations, waiting for better days.
Nothing to do with the FTX crash?
More than 1,000 Kraken employees have been laid off according to information reported by the company on Monday, January 9. According to crypto exchange officials, this decision has no connection to the recent sinking of FTP extension. A clarification that comes in a context in which many analysts believe that the repercussions of the bankruptcy of FTX are causing this situation.
The company evoked of the “macroeconomic and geopolitical factors”. The latter have “has resulted in a significant decline in trading volumes and client sign-ups.” A situation that forces it to get rid of about 30% of its workforce, which it still needs in the current context of the crisis affecting the crypto industry.
“Kraken was already looking into its business and personnel needs when news of FTX’s bankruptcy broke. Kraken has had no material exposure to FTX,” assured Jesse Powell, CEO of Kraken.
Faced with this situation, the manager underlines, the company has reacted since “slow hiring efforts and avoid large marketing engagements.” The strategy, however, did not allow the company to manage “The negative influences [de la crise, Ndlr] in the financial markets”.
Stay afloat until the market stabilizes
According to Jesse Powell, the measure is essentially intended to allow Kraken to remain operational while adapting to current market circumstances.
“I am confident that the steps we are taking today will enable us to continue fulfilling our mission, which the world needs more than ever. I remain extremely optimistic about cryptocurrencies and the Kraken,” he underlined.
This decision it also explains the extent of the crisis that the crypto industry has been going through in recent months. An economic earthquake that has prompted many crypto platforms such as Gemini and Coinbase to restructure their staff in order to survive. The price of many cryptocurrencies has also plummeted, with some losing more than 90% of their market value.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.