• Bittrex, a Seattle-based cryptocurrency exchange, is laying off more than 80 people.
• The layoffs are attributed to the “new economic environment” in the crypto industry.
• This comes after other crypto exchanges announced similar layoffs due to market downturns.
Bittrex Laying Off More Than 80 People
Seattle-based cryptocurrency exchange Bittrex has confirmed it is cutting its staff by more than 80 people, citing new market conditions as the primary cause of the reductions. In a leaked email on Twitter, CEO Richie Lai told employees that they had been working to reduce costs and increase efficiencies but were unable to do so due to the current economic environment in the crypto industry.
Reasons for Layoffs
The “new economic environment” cited by CEO Richie Lai includes multiple failures in the crypto ecosystem which caused a market downturn by the end of 2020. This has led to Bittrex having to reset their strategy and balance investments accordingly. The layoffs have affected nearly all departments within Bittrex and have come at a time when other major exchanges such as Coinbase and Gemini have also announced cuts due to market declines.
Consequences of Job Losses
CoinDesk estimates that since April 2020, over 29,000 jobs across the crypto industry have been lost due to press releases and media reports related to these layoffs. The effects of job losses can be felt both throughout individual companies and across entire industries as workers struggle with reduced wages or no income at all during this unprecedented time.
Crypto Market Outlook
As cryptocurrency prices remain volatile and many exchanges continue announcing layoff plans, it remains unclear what kind of impact this will have on the global crypto markets going forward. While some experts believe that cryptocurrencies could become more mainstream if governments start issuing them as digital currencies, others are skeptical about how well these digital assets will fare in uncertain economic times like these.
It is clear that crypto exchanges like Bittrex have been hit hard by recent events in the markets, resulting in significant job losses for many individuals across various departments within these companies. However, despite current hardships faced by these firms and their employees, there is still hope for a brighter future for cryptocurrencies if governments continue adopting them into their national economies moving forward.