The crypto market plummeted by more than 60% in the past five to six months. Major cryptocurrencies like Bitcoin, Ethereum, and Terra have lost more than half of their total values and are still continuing to lose their market dominance amid increased vulnerabilities in the global markets. Currently, according to reports, the market capitalization of all cryptocurrencies combines is about ten times less than its highest value in 2018. Bitcoin and Ethereum have quite rapidly fallen from grace which has indirectly affected the top crypto exchanges. As the digital asset domain continued to fall, investors swiftly shifted from riskier digital assets to more centralized and traditional forms of investment assets. Trading volumes declined dramatically pushing crypto exchanges and platforms towards major financial risks. It is still quite unclear as to when the crypto bear market phase will clear out, but it is quite evident from the present conditions of the crypto exchanges that investors are slowly losing their appetite to invest in digital assets, as crypto prices continue to plummet immensely. Here we have listed the top crypto exchanges that are facing huge financial risks amid volatile market conditions.
Recently, Celsius Network, a retail crypto lending platform experienced immense liquidity issues which caused cryptocurrencies to plummet heavily. The platform froze withdrawals and transfers between accounts to stabilize liquidity. Celsius accumulates crypto deposits and invests them in the crypto market to offer loan and insurance services. But even those investments declined slowly since most investors were fleeing the market and stopped applying for crypto loans. As a result, the company was unable to meet the users' demands.
BitPanda recently announced its decision to cut down its workforce, which triggered an unprecedented change in the market sentiments which were also catalyzed by rising inflation and concerns about an incoming economic recession. The company employed over 1,000 employees, which is believed to be cut down to around 700 right now. The company also revoked various job offers in order to cope with the current financial problems.
BlockFi is one of the largest crypto lenders in the world that is facing immense financial risks. The company declared that it would be laying off 20% of its total number of employees. BlockFi has been hit by the drastic changes in the crypto market and has experienced intense negative effects on its daily operations.
Robinhood's market cap has shrunk to around US$25 billion. The Gen Z broker is facing major problems as difficulties around the stock market continue to worsen. Conditions are so bad that experts have revealed that at the current stage, the company's market cap is lesser than its cash on hand!
Coinbase is one of the largest US crypto exchanges and has planned to cut 18% of full-time jobs or about 1,000 people due to the current market conditions. Executives of this company blame the possibility of a recession and slowdown in the customer fees, as it attempts to save more additional operations cash.
Binance remains unwelcomed in Texas, New York, and Florida due to regulatory concerns. Even though the platform has gained immense popularity in the field of cryptocurrencies, investors in these states are not allowed to access the platform. Amid the current market conditions, Binance's regulatory issues have led to greater financial risks for the platform.
Gemini is another eminent cryptocurrency trading platform that announced its recent plans to lay off a significant part of its staff due to unfavorable market conditions. Due to the recent crypto bear market conditions, the Gemini Trust business reportedly cut 10% of its employees. Gemini claims that the platform will refocus on products that are currently more important to the firm's growth.
Major Latin American crypto exchange Bitso faced quite a similar issue and declared that it would lay off about 80 employees, out of its 700 employees, just a week before welcoming a tightening global financial and economic market conditions. The company claimed that it would restructure its internal operations to match the existing market conditions.
2TM also said that it would lay off 12% of its total number of workers. The company is the second-largest cryptocurrency exchange in Latin America by market volume. The existing changes in the global financial landscape forced the firm to go above and beyond to reduce its operating expenses.
Crypto.com is also one of the many crypto exchanges that have decided to lay off about 5% of its company's employees. The company took this initiative to ensure sustainable growth in the long term. The team is utilizing its strongest resources and is preparing for the next crypto market bull run.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.