After FTX fiasco, cryptocurrency industry could see an acceleration of layoffs

In an industry already hit by a harsh crypto winter, the FTX/Alameda disaster could see an acceleration of layoffs.

The fall of the FTX empire could trigger waves of layoffs.

Employees in the cryptocurrency industry, who have already been retrenched at multiple companies in the sector due to the market downturn, could see a new wave of layoffs due to the implosion of one of the major exchanges and its sister company Alameda Research. These Siamese conjoined companies, whose nauseating degree of collusion continues to be revealedIn the past, these companies were closely related to an impressive number of industry players.

Information that may only be partial, but gives an idea of the extent of the damage, especially since an unknown number of companies in which Alameda had invested were forced to withhold their money from FTX. A condition that is also often found in conventional finance and is the cause of these famous “systemic collapses.”

In this perspective of potential contagion, a report from leading cryptocurrency site CoinGecko reveals that as of Nov. 13. 4,695 industry employees have retired. since the beginning of the year, but more departures are possible.

With the FTX collapse since November 6 and its full impact on the cryptocurrency space still in progress, more cryptocurrency layoffs could be coming in the coming months.

Report by CoinGecko

A domino effect to the power of X

We have reported many times about cryptocurrency companies laying off or laying off again. And many of them were not newcomers, such as Coinbase (2012), which has just done it again With another 60 employees.. But there is also Gemini (2014). which has In addition, thetwice takenCrypto.com (2016)…. each citing a particularly harsh “cryptowinter.”.

A questionable argument since they are not in their first relegation cycle.and that, if the Bitcoin price drop is anything to go by, it has already gone through worse, “settling” for the time being with a -74.5% from its peak (ATH). whilein 2014, its price had fallen by 86%. from its historic ATH of $1,177 and. in 2018 by 84% from its peak à 19 764 $. It is hard to believe that all these platforms have been carried away by the euphoria of a bull market, erring on the side of optimism and short-sightedness like the “blues”.

Evidently, there were management mistakes that are now being paid for by the “handymen” of the sector. But not only that. The collapse of the Terra Luna ecosystem in May, which brought with it the bankruptcy of large entities such as the Three Arrows Capital Fund which notably affected Blockchain.com (2011), which raised it as a justification for its downsizing, portends a devastating domino effect that could be repeated much more intensely with FTX, which will become inevitable as the months go by.