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The recent bear market brings a lot of worries and difficult situations for the cryptocurrency industry. Several platforms closed the store and fired their employees when their accounts went red. The second quarter results of almost all sites related to the cryptocurrency industry showed losses. Leading trading app Robinhood also suffers from this situation.
Robinhood had to lay off 23% of its employees.
Although Robinhood started out as a stock trading app, cryptocurrencies have come together. brought him a considerable profit. This year, the platform went even further and made up its mind Expand your cryptocurrency wallet with the addition of Shiba Inu and, more recently, Chainlink. While this should have boosted the company’s revenues, things have turned out differently since the recent cryptocurrency crash. Vlad Tenev, CEO of Robinhood, posted a post talking about the new wave of layoffs:
BREAKING: Robinhood, $ HOOD is laying off 23% of its employees.
– Watcher.Guru (@WatcherGuru) August 2, 2022
23% of the workforce fired from Robinhood those. about 780 employees. It’s worth noting that this isn’t the first time Robinhood has scaled back this year. Shortly before the publication of the first quarter results The company laid off 9% of its employees.. Referring to the reason for Robinhood’s recent layoff, Tenev wrote:
We have seen further deterioration in the macro environment as inflation hit a 40-year high accompanied by a massive crash in the cryptocurrency market. This further reduced client trading activity and assets held in custody.
Are cryptocurrencies really that good for Robinhood?
In March, Tenev announced that several new cryptocurrencies would be launched in Robinhood. Also, he said
We want to make huge investments and hire a lot of people. We will try to do this as soon as possible. We may be adding new cryptocurrencies along the way.
However, in his latest blog post, Tenev wrote:
As CEO, I have supported and taken responsibility for our journey as ambitious people – it’s my fault.
Although Robinhood has added a number of cryptocurrencies, the recent crash and its current situation could lead to this. limit the inclusion of other assets.
Also, the platform is currently running Tax inspection from the state of New York [NYDFS]. Crypto Robinhood division suffered one $ 30 million fine for violating the rules on money laundering and cyber security. While the platform is in the midst of a wave of layoffs, the company has been accused of being “understaffed”. With so many tragic events for Robinhood, the company should now keep a low profile.
Robinhood joins the long list of struggling companies
Macroeconomic conditions and the collapse of cryptocurrencies in recent weeks has led to A cascade of many actors From industry. The collapse of the Earth ecosystem has killed many companies, such as Voyager or the Three Arrows Capital investment fund. This deterioration of the situation has created a lot of noise because it is particularly striking Main actors first in the industry as a lender Centigrade. The company, which was forced into bankruptcy, recently filed a restructuring plan, but its image has been heavily tarnished. failure and revelations, including his incompetence, especially with regard to risk management.
Great players are not excluded Coinbase in particular is experiencing a very challenging 2022. with something layoffs, the failure of its NFT trading platform, and right now Binance has surpassed it for the amount of BTC it holds. Binance, on the other hand, is doing well, despite recent statements from executives explaining the loss of revenue caused by the implementation of KYC. FUD (Fear, Uncertainty and Doubt) i.e. fear, uncertainty and doubt) is spreading in the market at breakneck speed, more recently it was the Kucoin exchange that had to refute the rumors of mass layoffs.
This period is try life size for the cryptocurrency industry and its players, which have grown so fast that it is sometimes difficult for them to survive the shock associated with a market crash.
For market conditions, see our article here.