Crypto Exchange Gemini Cuts Staff Again
Crypto exchange Gemini in line for the next round of downsizing
In yet another blow to the industry, crypto exchange, Gemini plans to lay off another 10% of its staff to cut back on costs.
The report was provided by The Information after it intercepted an internal communication plan meant for Gemini's employees. The message referred to the crypto industry's crisis, as well as some "bad actors" in the industry that caused Gemini to make this decision.
This is the third round of downsizing that Gemini is going through within the past six months, as the crypto exchange is experiencing tough times.
The president of Gemini, Cameron Winklevoss, said the company had hoped to avoid further staff cuts, but that the "persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry" left it with no choice.
Of course, the party in question was none other than Genesis, and its parent company Digital Currency Group. Due to Genesis' own financial issues and bankruptcy, it has failed to meet obligations to Gemini and the crypto exchange platform's special project, Earn.
Earn is an interest-paying financial instrument that Gemini offers. The finances provided for the lending were covered by the Genesis group. However, due to bankruptcy, it was unable to pay the remainder of the due costs, which – according to Gemini – amounted to around $900m.
There was a back-and-forth between the two entities on social media as well, with Twitter being the main playground for the heated exchange.
Increasing trend of lay-offs in the crypto industry
Gemini isn't the first crypto exchange or crypto-based company to lay off its employees in the past year. The increasing number of bankruptcies, failures, and downright fraud committed by multiple crypto entities has contributed to a huge crash in the market.
After all these companies inherit losses and find it difficult to cover their expenses, the only stakeholder with a target on its back tends to be the employee.
The mismanagement of funds by upper-level executives is becoming more and more detrimental to not just company employees, but the crypto industry itself.
We wait to see how the market revives – if it does at all – and how much trust skilled workers will have in these crypto entities once again.
Author: Osama Shahid
Osama Shahid is an experienced writer and editor, mainly writing about gaming and crypto. In his free time, he loves to game, playing FIFA 23 and Rocket League.