FTX Collapse Will Push Crypto Firms To Lay Off Employees In the Next Time

The crypto sector has laid off 4,695 employees so far this year, and layoffs in the industry could continue to surge after the market saw the crash of FTX. Currently 25% to 40% of crypto hedge funds have direct exposure to FTX or FTT.

A recently shared report by crypto data aggregator CoinGecko shows that as of November 13, the crypto sector has laid off 4,695 employees through 2022, accounting for 4% of all layoffs by tech startups.

The report’s authors warned that crypto layoffs could increase in the coming months as the “full impact” of FTX’s sudden collapse takes effect.

Recent layoffs in the industry include payments giant Stripe, which is laying off 14% of its workforce (about 1,000 people), 22% at blockchain developer Flow Dapper Lab, and 10% at Digital Currency Group (DCG), the parent company of Grayscale and Genesis.

All layoffs went into effect in early November. Galaxy Digital also plans to cut 20% of its workforce on November 1, Coinbase laid off 60 more people on November 10,…

It can be said that this cryptocurrency crash has a more terrible impact than Terra-LUNA’s shocking crypto crash in May. FTX is the 2nd largest cryptocurrency exchange with a huge market share in investment funds. It has been reported that 25% to 40% of crypto hedge funds have direct exposure to FTX or FTT.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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