Layoffs are still ongoing in Crypto Space

This year 2023 started with so many layoffs done by various crypto exchanges and many other companies worldwide. Usually when the market is down then many exchanges try to reduce their manpower because they do not need more people to manage their operations and it is a common practice across the industry. Exchanges hire a lot of people during the bull run because that is the time when they have a lot of work and they need more hands to get it done the timing for a bull run is not so long however it was much better in the last one. Its been almost two years since this bear cycle and now things are shaking up for multiple exchanges in different countries.

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India had got two unicorns crypto exchanges at the time of Bull Run and now they have also started reducing their manpower. Ideally, This is not a good practice followed by these companies because they have made a lot of money during the bull cycle and now they are trying to get rid of people but that is how it works. Out of these two unicorns, one has decided to lay off its 12% of manpower and they have already announced the same. Although they are going to provide multiple benefits to the people they are going to release in the next few months and it is good but ultimately those people are going to get affected by their employment.

Bigger exchanges like Binance have also done the same this year and if we talk about the IT companies then this list is going to be long. Almost every tech company has laid off their employees this year including Google Amazon and many others so this year has not been good for the industry in terms of employee retention and seems like the remaining months are also going to be almost the same.

Coinbase Ventures-backed crypto exchange CoinDCX has let go of 12% of its workforce or 71 employees out of its total workforce of 590 employees. In a blog post, cofounders Sumit Gupta and Neeraj Khandelwal said that the current macro conditions in the prolonged bear market and the impact of TDS on domestic exchanges have resulted in a dip in the startup’s overall revenue, eventually leading to a workforce reduction.

This is the exchange based out in India that is funded by Coinbase and they have been doing pretty well in the market. I watched one of the recent AMAs with the founders and they did not share anything about it however they were looking quite confident that they have everything that is needed to survive this bear market but now all of a sudden things are looking different. they are claiming that they have taken this decision to ensure a healthy operation because they have also adopted technology in some way so it is required for them to reduce the manpower which can also affect on a positive side to the cost management.

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Indian exchanges are struggling for sure this time because of various reasons and taxation is surely one of the parts. We cannot expect any interim solutions from the government in terms of tax reduction because they are least interested so whatever the situation at the moment is going to be the same in the market for quite some time. The tax percentage is high along with the 1% tedious that makes it even more difficult for the traders and this is why there has been a drastic drop in trading volume on Indian exchanges. Some of the exchanges have tried to follow different methodologies like they have added different products to generate some revenue since the trading part is affected badly but still, some exchanges are not changing anything and probably that is the reason why they are struggling with their revenue generation.

A report was published almost two months back that how many exchanges are left with how much runway to keep their operations going in this bear market. If we get the bull cycle in the next year then probably these exchanges will be in better situations else may be we are going to see more layoffs happening in the next year because many of them will not be able to survive further.

Thank you

Posted Using LeoFinance Alpha