According to the CEO of Binance, the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. plans to continue with its hiring and strategic alliances, but on the other side BlockFi y Crypto.com will seek to minimize costs by laying off part of their workforce.
- Binance will move forward with its plans and alliances, says CEO.
- The exchange has a ‘war chest’ to deal with the crypto winter.
- Crypto.com will lay off about 260 employees.
- BlockFi will reduce its workforce by 20%.
Undoubtedly, the so-called “crypto winter” is taking its toll on companies in the sector, which are reportedly implementing strategies to cut costs and continue operations until the market shows much more favourable signs. But this does not seem to be the outlook for Binance, which seems that it will continue to carry out its expansion plans without doing without its workers.
Binance has reserves to cope with the bad outlook
With regard to the plans for Binance, the CEO and founder of the company, Changpeng Zhao (CZ), indicated that the exchange will continue with its expansion plans despite the effects of the crypto winter, given that they have reserves designed for a situation like the one that is happening now.
Zhao said this during a panel discussion at the event. Consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. 2022, where the executive of Binance shared some insights on the outlook for the crypto sector in recent times.
In this regard, Zhao commented:
“tenemos ‘un cofre de guerra’ muy saludable, de hecho, estamos expandiendo nuestras contrataciones en este momento. [Binance también] está acelerando en términos de actividades financieras, concretando fusiones y adquisiciones”.
“During bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. markets, everyone starts their own projects, everyone pays everyone ridiculous compensation. Now the market an area or arena, online or offline, in which commercial dealings are conducted. is more balanced, if we’re in a crypto winter, we’ll take advantage of that, we’ll use it to the fullest.”
According to Zhao, the strategy at the moment is to continue with the expansion plans while minimizing certain expenses. In this sense, he indicated that he does not see it as a priority to secure participation spaces in expensive promotional ads, as some exchanges did in events like the Super Bowl or securing their names on iconic sites in certain countries. This refers to the plans promoted by platforms such as Coinbase is an American company that operates a cryptocurrency exchange platform. y Crypto.com in recent times.
Crypto.com y BlockFi layoffs announced
While Binance wants to follow through on its plans and will look to take advantage of the crypto winter as best it can, platforms like Crypto.com y BlockFi face the weight of the bear someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.” market and would consider reducing their employee base to reduce costs.
Let’s start with Crypto.com, as the exchange announced today that it will cut 5% of its workforce, a figure that would correspond to an estimated 260 employees.
This was confirmed by the CEO of the exchange, Kris Marszalek, who shared the announcement in a message published through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of the exchange. Twitter, where he shared some observations on the current landscape and commented on the following:
“That means making difficult and necessary decisions to ensure continued and sustainable long-term growth through targeted reductions of approximately 260 [employees] or 5% of our corporate workforce.”
That means making difficult and necessary decisions to ensure continued and sustainable growth for the long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. term by making targeted reductions of approximately 260 or 5% of our corporate workforce.
— Kris | Crypto.com (@kris) June 11, 2022
For its part, in relation to BlockFi, the CEO of the platform, Zac Prince, also did the same and made a similar announcement through a message posted today on his Twitter account, where he reported:
“This morning we announced that, after taking some time to plan and consider, we will be reducing our workforce by approximately 20%. This is not a decision we take lightly, so we are very saddened by it.
This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness.
– Zac Prince (@BlockFiZac) June 13, 2022
Contingency plans for the crypto winter
The announcements made by Crypto.com y BlockFi join the communiqués presented by other large exchanges in recent times, which also announced layoffs and staff reductions in order to face the current bearish scenario present in the markets.
These include platforms such as Gemini y Coinbase, two of the most reputable exchanges at international level, which reported that they will dispense with a percentage of its workforce to reduce costs, while pausing hiring to avoid incurring more expenses.
Meanwhile, the crypto market recorded this June 13 one of its sharpest falls in recent weeks, taking much of the main exponents of the sector to lows that had not been seen since 2020. Taking for example the case of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. (BTC), the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. with the largest market capitalization lost more than 16% of its price in the last 24 hours, falling to about USD $23,259 at the time of editing.
- Gemini crypto exchange lays off 10% of its workers in response to crypto winter
- What’s going on in the market? Stock market sector and crypto ecosystem go down on June 13
- Despite the fall, Bank of America report says there is still great interest in cryptocurrencies
Version by Angel Di Matteo / DiarioBitcoin
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