Crypto winter hit the cryptocurrency industry hard. Exchanges like Coinbase (NASDAQ:COIN) are already laying people off. Companies that depend on crypto, like MicroStrategy (NASDAQ:MSTR), lose ground. Now, one more firm suffers at the hands of crypto winter: Crypto.com.
The massive downturn in cryptocurrency—it took over half of bitcoin’s (BTC-USD) value in the space of a year—has far-ranging effects. We’ve already seen what it’s done to some major names, and now crypto.com is getting hit. Crypto.com is the third-largest firm in the crypto exchange space, and now it will be 20% smaller as far as staff headcount goes.
Kris Marszalek, the company’s founder and CEO, took to a blog post to explain what was going on. He noted that the company was building on past momentum, but that momentum came to a screeching halt when the macroeconomic environment turned on crypto as a whole.
Now, the firm employs between 3,600 and 4,500 workers, at last estimate, even with the losses included. This isn’t the first round of layoffs for crypto.com, either; last June, it cut ties with 260 staffers, while July through October saw another 2,000 head for the doors. Though the company hit $1.2 billion in revenue by 2021, it had a rough time surviving troubles both internal and external. These included several mistaken transfers that sent over $400 million to other exchanges, as well as the collapse of FTX.
The last year for bitcoin featured mostly downs. Bitcoin has been in open decline since April 2022, losing over half its value. Only recently, it saw an upturn that allowed it to once again challenge the $20,000 mark.
