According to a company representative, Genesis Global Trading laid off employees on Thursday. Derar Islim, the interim CEO, stated publicly prior to the announcement that the company needs more time to find an appropriate solution to its current problems.
30% of Staff Gone
Genesis Global Trading, according to a source that spoke to Thenewscrypto, laid off 30% of its workforce, or 145 employees. Sales and business development were the departments hardest hit by the layoffs.
According to a company spokesperson, Genesis has decided to reduce its global headcount as it works to address the industry’s unprecedented challenges.
These steps according to the spokesperson were part of the company’s efforts to grow its business. The company values the efforts of its talented and dedicated team in determining the best long-term outcome for the company, clients, and employees.
Biting Bear Market
Investors and cryptocurrency companies have faced financial difficulties as a result of the prolonged bear market and unexpected drop of the Terra ecosystem in May, as well as the recent collapse of FTX.
Some businesses have experienced severe financial difficulties and have even declared bankruptcy. As a result of these financial difficulties, some businesses have been forced to implement mass layoffs.
Furthermore, according to a study published at the end of the year, widespread layoffs in the cryptocurrency industry will affect 9,564 people in 2022. Over 200 people were laid off at cryptocurrency bank Silvergate in the most recent round of layoffs due to a 40% reduction in staff.
Huobi Laying Off People too
Reports indicate layoffs are sweeping through the entire industry. According to reports, cryptocurrency exchange Huobi has fired employees and ceased internal communication, prompting some members of the community to advise users to withdraw their funds from the exchange. Huobi’s advisor has denied the rumors though.
Justin Sun, a Huobi adviser, took to Twitter on January 5th to address speculation about the exchange’s financial solvency. Sun stated that the exchange’s business is progressing well and that the security of its users’ assets will not be jeopardized.
As the bear market persists, time will tell which crypto companies stay afloat and which ones suffer heavy setbacks. The key to survival we saw with the FTX debacle, is the ability to retain public trust. A public trust deficit was one of the main reasons SBF’s crypto empire came crushing down.
As the bear market continues, it will be interesting to see which cryptocurrency companies can weather the storm and which will face significant challenges. As demonstrated by the FTX situation, maintaining public trust is critical to surviving in this market. One of the primary factors that contributed to the demise of SBF’s cryptocurrency empire was a lack of public trust.
Image Courtesy of Shutterstock
