It has already been a tough few months for the crypto industry and nobody is feeling that more than crypto-related employees who have been dropping like flies in recent weeks. Canadian based cryptocurrency exchange Coinsquare is the next crypto firm to lay off workers as the market goes through difficult times.
Coinsquare has reportedly laid off 40 employees, which equates to approximately a third of their staff. Cryptocurrency exchanges are currently feeling the brunt of increased regulatory requirements and the massive decrease in Bitcoin prices that are currently teetering around $3,500.
Something has to give, and that is what we are currently seeing with employee culls across numerous crypto exchanges and industry-related companies.
The Head of Talent at Coinsquare, Martin Hauck, took to Linkedin to announce the job losses. Hauck detailed that the unpredictable and volatile nature of the cryptocurrency markets in recent months is the main reasons for the lay-offs. Hauck told the crypto-sphere on Linkedin that:
The ever-evolving digital currency/cryptocurrency space has been volatile and unpredictable. Many similar companies in our industry have had to make some tough choices in recent months and Coinsquare has had to as well. The company has made the decision to part ways with a number of talented members of the Coinsquare team. All of which have made their own impact and contribution to our success so far, for which we are extremely grateful for.
It is believed that the Canadian cryptocurrency exchange had approximately 150 staff, and with the reports across a multitude of sources, the number of people losing their jobs at Coinsquare in this wave of redundancies is close to 40 people.
As with many crypto-related businesses over the past year who were attempting to grow and expand, Coinsquare has been a victim of its own success amidst a downward spiraling market. Last July they laid off 20 staff in a plan to restructure while expanding into other markets such as their Japanese crypto exchange platform. Back in December, the exchange announced it would be entering 25 new markets across the EU while acquiring the crypto wallet provider Blockeq.
The redundancies at Coinsquare are just the latest in an alarming trend of crypto-related job losses that are rocking the industry.
In the past two weeks, CCN.com reported that the crypto exchange giants Huobi were laying off staff and preparing for the worst. At the time, the Huobi CEO, Livio Weng Xiaoqi, told the media at their Beijing office that the exchange was treading carefully by stating:
We do not know how long the bear market will last, so it is still possible that we will struggle to survive. We have to plan in advance and spend money carefully.
Over the past two months, other crypto-related businesses such as Bitmain Technology, Shapeshift, Steemit and Coinfloor, alongside others have announced job losses that are related to the indecision of the future of the markets.
The knock-on effects of the bearish markets are causing chaos in terms of expansion and growth for crypto companies. It’s a very concerning time for crypto-related employees, especially those that work in cryptocurrency exchanges such as Coinsquare.
Last modified: August 2, 2020 11:03 AM UTC