BlockFi and Crypto.com to Shed 400+ Jobs Amid Crypto Rout

Lending platform BlockFi and major cryptocurrency exchange Crypto.com are set to cut more than 400 jobs between them in the wake of this week’s 12 percent crypto market slump.

In a June 14 tweet, BlockFi CEO Zac Prince said “roughly 20 percent” of its workforce would be shed, which amounts to 170 employees:

Tweeting last weekend, Crypto.com CEO Kris Marszalek quoted corresponding figures of 5 percent and 260 employees:

Latest in a Line of Job Shedders

Both bosses blamed this year’s steadily deteriorating crypto market following its US$3 trillion peak last November. But surely the catalyst for the pending dismissals would have been this week’s 12 percent plunge, which pushed the market cap below US$1 trillion.

Neither firm is unique in its intention to downsize staff. Gemini, helmed by Winklevoss twins Cameron and Tyler, has cut 10 percent of its workforce, and Coinbase, another major US exchange, has withdrawn more than 300 job offers and introduced a hiring freeze. Middle Eastern exchange Rain Financial has reportedly culled “dozens” of jobs.

Gone Big Too Soon?

Like BlockFi, Crypto.com was riding high just a matter of months ago. In November last year, it paid a reported US$700 million in naming rights for the Los Angeles sports and culture arena formerly known as the Staples Center. Earlier this year, the company signed a five-year sponsorship deal worth A$25 million with the Australian Football League. The highly visible exchange, whose name is now ubiquitous in sporting circles, also has partnerships with the UFC, Formula 1, Italian Football Lega Serie A and French football powerhouse Paris Saint-Germain.