Jan 24, 2023 05:05
<p>Gemini, the
<a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" class="terms__main-term" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa" target="_blank">cryptocurrency exchange</a> owned by the Winklevoss twin brothers, is set to reduce
its workforce by a further 10%, making job cuts for the third time in the last seven
months. Despite a rebound in cryptocurrency prices in 2023, the crypto winter
continues, with more companies announcing job cuts in the sector.</p><p>Gemini Cuts
Jobs for the Third Time</p><p>According
to an internal message viewed by The Information, the company managed by
Tayler and Cameron Winklevoss is set to lay off a tenth of its current
workforce. The news was distributed on Monday via the company's Slack and
separately confirmed by CNBC in an interview with a company
spokesperson.</p><p>Gemini had
about 1,000 employees in November, <a href="https://www.financemagnates.com/cryptocurrency/gemini-approved-as-a-virtual-asset-service-provider-in-ireland/" target="_blank" rel="follow">having laid off about 7% of its workforce in
July</a> and <a href="https://www.financemagnates.com/cryptocurrency/crypto-winter-gemini-sheds-off-10-of-workforce-in-first-job-cut/" target="_blank" rel="follow">cut 10% of its workforce a month earlier.</a> "It
was our hope to avoid further reductions after this summer, however, persistent
negative macroeconomic conditions and unprecedented fraud perpetuated by bad
actors in our industry have left us with no other choice but to revise our
outlook and further reduce headcount," Cameron Winklevoss wrote in a Slack
message seen by The Information.</p><p>Gemini Problems
Pile Up</p><p>Although
the crypto market is still near its long-term minimums, low prices are one of
Gemini's latest problems. The platform is facing a court battle with the U.S.
<a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" class="terms__secondary-term" id="3718b4df-fc5f-479a-861e-f52759439c15" target="_blank">Securities and Exchange Commission (SEC</a>) over alleged unregistered sales of
securities in connection with its partnership with Genesis, Barry Silbert's
bankrupt company.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">1/ Earn Update: This evening, Genesis Global Capital, LLC (Genesis) filed for bankruptcy under Chapter 11. This is a crucial step towards us being able to recover your assets.</p>— Cameron Winklevoss (@cameron) <a href="https://twitter.com/cameron/status/1616298056097624064?ref_src=twsrc%5Etfw">January 20, 2023</a></blockquote><p>The lender generated
sizable profits for Gemini customers through Gemini Earn, the platform's
high-yield product. However, the relationship between the two companies was
severely damaged when the FTX exchange filed for bankruptcy. Genesis froze
loans and redemptions, leaving customers of the Winklevoss brothers' exchange
without almost $900 million. </p><p>It forced a
sizable group of the exchange's 340,000 customers to take matters into their
own hands. They filed a class action lawsuit against the exchange. Meanwhile,
Genesis has filed for bankruptcy protection, where Gemini is listed as the
largest creditor with $765.9 million.</p><p>Watch the recent FMLS22 panel on reimagining the crypto market structure.</p><p>Industry
Feels the Crypto Blues</p><p>While
Gemini is laying off employees for the third time in a short period, other
cryptocurrency companies are also choosing to cut jobs to optimize costs.</p><p>A week ago,
ConsenSys, a cryptocurrency software company, <a href="https://www.financemagnates.com/cryptocurrency/consensys-joins-crypto-layoffs-with-11-workforce-cut/" target="_blank" rel="follow">confirmed its plans to cut 11% of
its current workforce</a>, which translates to almost 100 positions. The company
wants to focus on its core business and increase existing productivity.</p><p>Similar
plans were announced by the Coinbase exchange, <a href="https://www.financemagnates.com/cryptocurrency/binance-hires-when-coinbase-cuts-employment-amidst-crypto-winter/" target="_blank" rel="follow">which intends to lay off about
20%, or 950 people</a>. It is part of a restructuring effort expected to be completed
in the second quarter, costing the platform up to $164 million.</p><p>Blockchain.com,
a Luxembourg-headquartered cryptocurrency exchange, <a href="https://www.financemagnates.com/cryptocurrency/mass-layoff-continues-as-blockchaincom-sheds-25-of-workforce/" target="_blank" rel="follow">decided to cut 25% of its
workforce last year</a>. The largest number of affected employees resided in
Argentina, where the platform closed its offices. In total, about 150 people
lost their jobs.</p><p>In 2023, bitcoin
has grown by more than 20%, with the total market capitalization of the
digital asset rising above $1 trillion. The question is whether this is enough
for the industry to forget the upheaval caused by the collapse of FTX and the
Terra ecosystem last year.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
