Coinbase Global Inc COIN revoked employment offers to people who accepted them and announced a slowing of its hiring pace in recent weeks. Another cryptocurrency exchange, Gemini Trust Co., lost 10% of its workforce, citing the effects of the market downturn, writes WSJ.
In response to the ongoing crypto price collapse, cryptocurrency firms have slowed their spending frenzy.
Related: Coinbase Plans To Slow Hiring Amid Crypto Market Downturn
According to ManpowerGroup data, after hiring more than doubled from November to April, crypto firms reduced hiring in May. The top three employers in the crypto market as of last month were Block Inc SQ, Coinbase, and Gemini.
Interest-rate hikes by the Federal Reserve have contributed to a market selloff, with speculative assets bearing the brunt of the damage. Bitcoin has plunged 55% since November, while the overall crypto market has dropped 59%, states WSJ.
Also read: Coinbase Invests In Cryptocurrency Exchange Zipmex As Opposed To Outright Acquisition
That selloff has lowered the volume of crypto trading, and it is forcing some companies to work to adjust, stated Kavita Gupta, founder of the investment firm Delta Blockchain Fund.
“Companies that went public or expanded during the high-peak time and did not figure out their balance sheet for three years of cash flow have to tighten their belt,” she added.
Advertising is another place where crypto firms are cutting costs, the WSJ report said. According to the analytics firm MediaRadar, cryptocurrency firms spent $10 million on advertising in April, the lowest amount since September.
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