Crypto Crunch Continues: Coinbase Fires Employees Binance Struggles

Not so long ago, a financial revolution was proclaimed by many as some predicted that cryptocurrencies were the future. And the prices of Bitcoin. seemed to confirm that. But now there is an apocalyptic mood on the market.

Revolution or bubble? For a long time, this was the question that hobby finance experts, but also professionals, asked themselves. Because for a long time, cryptocurrencies only knew one direction: up. The result was that crypto exchanges and other offers of this kind shot up like mushrooms.

The growth was tremendous, but then the crash followed. However, there were not only economic problems with the collapsed courses but also cases of fraud such as those of FTX. Since then, industry insiders have only been talking about crypto winter and many also want to indicate that this will end at some point because as is well known, winter is always followed by spring.

Does the crypto winter ever end?

But so far it doesn’t look like a recovery is in sight. The industry heavyweights Coinbase and Binance are currently showing this. For example, Coinbase has now announced that 950 employees will have to be laid off, which is about 20 percent of all employees on the trading platform.

As TechCrunch reports, Coinbase has also announced that it will discontinue several projects as part of austerity measures. It’s not the first time Coinbase has tried to cut spending, with around 1,100 employees having to look for new jobs last summer.

Binance is Bleeding

Things are also not looking good for Binance, another industry heavyweight: According to a report by the business magazine Forbes, more and more investors are withdrawing funds and this means that Binance is “bleeding dry”: Last Friday alone, customers had 360 million dollars deducted from Binance.

In the course of the uncertainty after the collapse of its competitor FTX, Binance was not able to benefit, on the contrary: almost a quarter of Binance’s assets left the stock exchange in less than two months. Figures from CoinMarketCap also show how dramatic the situation in the entire crypto market is, according to which the total value of cryptocurrencies fell by 56 percent to $848.7 billion last year.