This is not the first time a crypto winter has settled over the market. Reports indicate there have been as many as 5,000 layoffs in the crypto sphere since April. The world’s only publicly traded crypto exchange, Coinbase (COIN), laid off roughly 18% of its workforce in June, while its share price has fallen 75% year to date. Publicly traded companies haven’t been spared either. “This is where we are now, in the contraction phase that is settling into a period of stasis-what our industry refers to as ‘crypto winter.’” The Winklevoss memo cited “current macroeconomic and geopolitical turmoil” as a catalyst for this troubling devolution. Tyler and Cameron Winklevoss, the CEO and president of Gemini, announced in a June blog post that the industry was entering a contraction that they labeled “crypto winter.” At the same time, Gemini laid off 10% of its workforce during the same period. Exchanges and BlockFi cut a combined 400 employees the month before OpenSea saw its layoffs. This came after trading on its platform fell 99% from an all-time high in May.Ĭrypto exchanges have seen similar downsizing. Leading NFT marketplace OpenSea cut its staff by 20% in July. Robinhood (HOOD), which allows crypto trading on its platform, let 23% of its staff go in August, saying its earlier 8% job cuts in April didn’t account enough for the crypto crash and overall bear market. 19, crypto lender Hodlnaut announced it laid off 80% of its staff. Many crypto and blockchain companies have seen profound losses and witnessed significant layoffs. The people and companies behind cryptocurrencies are facing difficulties as well. Crypto Winter Job LossesĬryptocurrencies themselves aren’t the only things suffering in this climate either. Since November 2021, the crypto market has dropped 60%-drastically falling from $3 trillion to less than $1 trillion, as of this writing. “By the time TerraUSD and Luna collapsed and set in motion a domino effect in the crypto world, crypto winter had already begun,” he says. Zakharov notes that high inflation has driven rising interest rates in the U.S., which is the biggest player in crypto. “The crypto market was already feeling the effect of world events, especially the Russia-Ukraine conflict that caused turmoil in global finance,” says Igor Zakharov, CEO of DBX Digital Ecosystem. Analysts believe the wheels of the emerging crypto winter were set in motion earlier in 2022. During this difficult time, you must remain vigilant and be prepared for chaos to sweep over the market without much warning.ĭefining the phrase even more literally, crypto winter is when prices contract and remain low for an extended period.

Similarly, an extended period of trouble may be settling over the crypto market. The phrase “crypto winter” likely came from the hit HBO series, “Game of Thrones.” In the show, the motto of the House of Stark was “Winter Is Coming.” It was considered to be a warning that lasting conflict could descend on the land of Westeros at any time.

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