Gemini, owned by billionaire Winklevos twins, plans to lay off one-tenth of its employees in the wake of the recent sharp decline in digital assets in the crypto markets.
According to the Financial Times, the digital asset market is set to plummet to $ 2tn in November 2021, with $ 2 tn expected to be released on Thursday.
“This is entering a period of stabilization at the current level of contracting – our industry is called ‘Crypto Winter’,” Cameron and Tyler Winklevos, who first reported in Bloomberg, wrote in a memo. .
Bitcoin has fallen more than 50 percent since November, while other small coins have suffered the worst losses. At the same time, the collapse of the once-famous Luna and Terra tokens last month has eroded traders’ confidence in crypto-credit programs such as staking, giving them lucrative returns.
Crypto traders are playing more actively in the market as it grows, analysts and exchange executives say. Given the size and weight of the bear market, crypto trading volumes have fallen sharply.
According to blockchain data, the volume of transactions between major exchanges this year reached an average of about $ 750 billion, compared to $ 1.2 tn in 2021. Low rates reduce transaction costs by facilitating transactions.
A.D. “The crisis in the crypto market has been exacerbated by the current macroeconomic and geopolitical turmoil,” the Winklevos brothers, who founded New York-based Gemini in 2014, told staff.
The crypto industry has grown as central banks and governments pour into the global economy and people around the world are stuck at home during closed locks. However, investors have been vying for the forecast this year, with untapped tech companies and other risky bets on the global central bank’s efforts to fight inflation.
Some investors have speculated that cryptocurrencies may be temporary and that innovations such as blockchain digital laser technology could change finances.
Venture Capital Group Andres Horowitz launched a $ 4.5 billion cryptocurrency fund earlier this month because the crypto industry is entering a new “golden age” where “new talent, viable infrastructure, and community knowledge” will encourage rapid innovation.
Echoing this sentiment, the Winklevos brothers said that the so-called “astronauts” were “in good shape” and that “the impact would be profound.” However, he noted that the dark side of the crypto market is unlikely to rise anytime soon.
“We have asked team leaders to focus only on products that are critical to our mission and to assess whether their teams are appropriate for the current turmoil in the market,” he said.
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