Layoffs will continue in the cryptocurrency space in 2023 with no end in sight for crypto losses

Crypto exchange Huobi has become the latest to announce mass layoffs in 2023 amid growing cryptocurrency unrest and uncertainty.

Huobi announced on Friday that it would cut at least 20% of its workforce in the first quarter of 2023, highlighting the crisis in the crypto market as prices for most assets continue to decline.

The company told Reuters it would keep a “lean team”, given the bear market. Earlier, Tron founder Justin Sun hinted at Huobi’s “structural adjustment” plan in a social media post.

Huobi reportedly onboards about 20,000 new members daily over the past three months.

Commenting on Huobi’s membership campaign, a Chinese crypto entrepreneur named Sun reportedly described the achievement as “a fire in the cold” despite the deteriorating macro climate.

In late November last year, crypto analytics platform CoinGecko ranked Huobi eighth among cryptocurrency exchanges based on trade volume.

In another recent development, John Crain, CEO of non-fungible token (NFT) marketplace SuperRare, said the company will be cutting its workforce by 30% due to unfavorable market conditions. Crain’s statement posted to Twitter on Friday claimed that SuperRare had hired more people over the course of the NFT the rapid expansion of the market that it could not sustain in the long term.

“During the bull run, we (NFT) grew in tandem with the market,” Crain wrote. “Over the past few months, it’s been clear that this growth was not sustainable. We ‘overhired’, and I take full responsibility for that mistake.”

Crain said the reduced workforce would ensure that artists and collectors would continue to receive his services.

Job cuts continue

SuperRare joins a growing number of crypto firms that are retreating to survive in the market. Coinbase laid off 11,000 workers in June. Shortly after, the OpenSea NFT market cut its staff by 20%. Crypto brokers, trading companies, payment processors and Web3 game studios have also cut jobs. Meta Platforms Inc laid off 13% of its staff in November in its apps and reality lab business.

According to a person familiar with the situation, cryptocurrency firm Genesis has cut its workforce by 30% in a second round of layoffs in less than six months as pressure mounts on industry executives to cut costs following a slowdown, Reuters reported.

After crypto exchange FTX collapsed in September, several companies went bankrupt, leading to a drop in investor interest. Silvergate Capital Corp, a cryptocurrency-focused bank, said Thursday it would cut its current workforce by 40%.

“As we continue to face unprecedented industry challenges, Genesis has made the difficult decision to reduce our global workforce,” a company spokesperson confirmed.

Cryptocurrency companies have laid off thousands of people from their jobs and delayed expansion plans due to the turmoil of the past year. According to CoinDesk, some 26,000 people have lost their jobs.


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