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Major crypto companies, including Crypto.com, Coinbase, and Genesis, have announced layoffs in 2023.
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To make matters even more complicated, the SEC just filed charges against two major players in the crypto industry.
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Despite recent turmoil, the prices of major cryptocurrencies such as Bitcoin and Ethereum have rallied this year.
It’s been a rough, rough winter for the crypto world.
The new year has barely begun, but so far the cryptocurrency industry’s 2022 pain has shown no sign of slowing down. Industry:
Here is a quick summary of what has already happened.
Two weeks of massive layoffs
In early January, several major companies in the cryptocurrency industry, such as Genesis, Coinbase, Blockchain.com, and Crypto.com, announced plans to significantly reduce their workforce. For some of these companies, such as Crypto.com and Genesis, this is the second round of layoffs in a short period of time, following earlier layoffs over the summer due to falling cryptocurrency prices.
In recent layoff announcements, some companies hinted at “rogue actors,” while others directly addressed the elephant in the room: FTX’s bankruptcy.
Fingerprints of FTX
Indeed, the spectacular implosion of Sam Bankman-Fried’s company in November caused ripple effects that still hurt the industry.
Crypto investors are still unable to withdraw some assets from crypto exchanges such as Gemini, and there is a growing mistrust of centralized exchanges among average investors.
Legal barriers
To make matters worse, the SEC on Friday accused cryptocurrency companies Genesis and Gemini, founded by the Winklevoss twins of Facebook fame, of illegally offering unregistered securities for sale. The charges come after SEC Chairman Gary Gensler faced criticism from some investors for failing to protect FTX from alleged abuses.
While some leaders in the crypto world, such as the CEOs of Coinbase and Ripple, they asked In the past, calls for more regulation around crypto trading have not gone down well with Gemini CEO Tyler Winklevoss, who has been criticized The SEC’s actions were described as “completely counterproductive” on Twitter.
Despite the current turmoil in the industry, with some analysts questioning how much more strain the industry can bear, cryptocurrency prices are doing relatively well; both Bitcoin and Ethereum prices have risen by double-digit percentages since the beginning of the year.
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