Large cryptocurrency companies have begun massive staff reductions

Large cryptocurrency companies have begun massive staff reductions

Author: Robert Strickland (crypto-journalist)

Large cryptocurrency companies have begun massive staff reductions
Major cryptocurrency companies have begun massive layoffs
Analytics platform Nansen and cryptocurrency exchange Binance will lay off up to 30% of employees

Major cryptocurrency companies have begun to conduct large-scale staff reductions. Analytics platform Nansen has laid off 30% of its staff, while cryptocurrency exchange Binance plans to cut about 20% of its staff in June.

The first is that Nansen has built up a large team in recent years and now the company is overstaffed -- such a number of people was not part of the firm's core strategy, Svanevik said.

The second reason, he cited was a tough year for cryptocurrency markets. Despite revenues from corporate and institutional clients, Nansen's costs are too high for the current state of affairs.

Nansen's platform was launched in 2019 with investments from a16z (Andreessen Horowitz), the venture capital arm of Coinbase, U.S. investment firm Tiger Global and other large companies.

For his part, crypto-journalist Colin Wu, citing multiple sources, reported that cryptocurrency exchange Binance also began layoffs, but the exact number of people affected by the cuts is still unknown. Wu says about 20% may be laid off in June.

A Binance spokesman commented for The Block on the layoffs. He said the layoffs affected some employees who did not perform well or fit the culture of the exchange.

"It's not about determining the size (of the team), but rather reevaluating whether we have the right talent and experienced people to do critical tasks, and so we will still be looking to fill hundreds of open positions," the exchange spokesman said.

In January, Binance CEO Changpeng Zhao announced plans to increase the exchange's team by 15 percent to 30 percent in 2023. As of May 31, there were 327 open positions on Binance's website.

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