Bear market trend has led to players in cryptocurrency sector laying off staff. The situation has affected not only the smallest players but also the mighty. Per information on local news outlet South China Morning Post (SCMP) Huobi is set to layoff undisclosed number of personnel.
Although the firm is laying off some of its underperforming staff, it’s still hiring compete personnel to take care of business from emerging markets and core business. A spokesperson from Huobi exchange termed the laying off process as “optimizing staffing.” According to reports, Huobi has 1,000 fulltime working staff, and with such a high number of employees, many will be jobless. The laying off of 60% of Huobi employees in its Brazilian office paints a broader picture of the situation brought about by the bear market. The Brazilian exchange platform was set up in May this year.
Furthermore, the bear market will also affect virtual currencies listed on its exchange. The exchange sent delisting warning to 32 virtual currencies listed on its platform. Due to the low trading volumes, the 32 cryptocurrencies might be delisted.
Other Industry Players Affected
Other than Huobi ConsenSys has confirmed its laying off 13% of its staff because of the bear market trend. ConsenSys is an Ethereum blockchain based platform created by Joseph Lubin Ethereum co-founder. Further on another blockchain based firm laying off staff is Steemit Inc. In a bid to reduce its overall operations cost Steemit Inc will let go 70% of its staff. The latter is a platform which rewards its users for content creation.
Besides exchanges and blockchain firms mining firms are also affected by the bear market trend. Bitmain, a giant crypto mining firm, is set to lay off an undisclosed number of employees. With a headcount of 3,100 rumors is Bitmain will lay off 50% of its staff. Across borders, in Japan GMO another crypto mining firm has also set plans in motion to cut down on its mining business. Due to the bear market trend GMO will no longer sell, develop or manufacture mining machines. Even though GMO is no longer in the manufacturing business, it has fully paid for 7nm mining machines. But for its development and manufacturing assets, they will be under MP18 LLC. The latter is a special purpose firm under its parent firm Tani Electronic Corporation.
Although GMO is moving away from manufacturing, it will still carry out in-house crypto mining. However, GMO will relocate to another region with cheaper energy sources.