Following the overbearing bear market effects, crypto lender Genesis has reportedly sacked 30 percent of its workers in its second round of layoffs in six months according to a report.
It was gathered that Genesis Global Trading is also considering filing for bankruptcy due to the negative effects of FTX collapse as well as losses from loans to Alameda Research and Three Arrows Capital.
Recall that Genesis disclosed in August that it would reduce its 260-person workforce by 20% in a bid to cope with the prevailing market conditions. Additionally, CEO Michael Moro said then that he would be stepping down and taking up an advisory role.
However, the crypto lending platform halted withdrawals and suspended new loan originations in Nov. due to the harsh market instability. Most of its business partners such as Alameda research and Three Arrows Capital were also swept away by the bear market in 2022.
More Web3 Firms Lay off Workers
It is noteworthy that Genesis Global Trading is not the only Web3 firm negatively affected by the bear market. Octopus Network reportedly sacked 40% of its staff on Dec. 28 in reaction to the market conditions.
The decentralized app chain Octopus network disclosed that the decision was taken in line with its restructuring program to adapt and to stay afloat in the current market conditions, thereby leaving the firm with just 18 workers.
In the same vein, California-based investing and trading platform Robinhood embarked on a dismissal spree. The firm announced that it would cut costs by reducing its workforce due to the significant drop in revenue. This led to the layoff of 23% of its staff.
There are no mincing words that judicious use of the limited available resources has become the watchword of every Web3 firm at this point It would be recalled that Voyager Digital also hinted at financial difficulties due to exposure to Three Arrows in 2022.
More than any other time, exchanges and crypto firms should set their priorities right and spend resources on only crucial things.
