Yesterday, we reported that the crypto lender Celsius has paused all customer operations for the time being due to adverse market conditions. Now, we bring the news of one of Celsius’ biggest competitors, BlockFi, cutting its staff by roughly 20%. BlockFi’s explanation for the layoffs also blames the market conditions throughout the crypto industry, whose value has shrunk over the past weekend.
BlockFi has already experienced difficulties early this year, when the lender paid $100 million in settlement with the U.S. Securities and Exchange Commission (SEC), after it failed to register its yield returns.
Meanwhile, the cryptocurrency exchange Crypto.com was forced to layoff 260 employees, which amounts to 5% of its workforce. Again, the company referenced the current “market downturn”.
Crypto.com made news stories during the past six months in large part thanks to its heavy marketing efforts. Namely, the exchange spent some $1.5 billion in total on marketing. Crypto.com is now the only crypto exchange to sponsor the FIFA World Cup 2022. It has also acquired the naming rights for a sports venue in Los Angeles that used to be the Staples Center.
The news of layoffs within BlockFi and Crypto.com come less than two weeks after another two large crypto exchanges, Coinbase and Gemini, also announced layoffs.