Due to the negative impacts that the fall of FTX has had on the crypto market, more layoffs are expected to happen in the coming months.
The recent FTX scandal shocked the crypto market, as many people lost millions as a result of irresponsible behavior from FTX’s executives. Because of the FUD caused by FTX, the crypto market is experiencing hardships. Hence, experts predict that many companies working in the crypto industry may have more layoffs as the impacts of FTX intensify.
According to CoinGecko, around 5,000 employees have been forced to stop working as of November 14. This number could increase given the current recession and recent events.
We’re yet to see the full impact of FTX. Though many predict there will be a domino effect in the market.
Many exchanges have already experienced fewer users, aggressive withdrawals, and much more. The market sentiment remains negative.
Even before FTX-related events, companies were laying off employees due to increasing costs and lower revenues. Some examples include Elon Musk’s Twitter (even though not largely considered part of the crypto industry), Mark Zuckerberg’s Meta, Coinbase, etc.
Other layoffs include Flow blockchain’s Dapper Lab, cutting off 22% of its workforce. Digital Currency Group laid off 10%, and Galaxy Digital cut 20%. All of these companies are relatively large and quite significant in the crypto industry.
According to CoinGecko’s report, most of the companies that are laying off employees are located in Silicon Valley, San Francisco. Others include Dubai, Singapore, and other crypto-friendly cities.