The recent events in the crypto space, beginning with the Terra-LUNA meltdown and culminating with the recent collapse of one of the largest crypto exchanges, FTX, have had a negative impact on the entire crypto industry.
One such negative impact is the decision by the management at the Argentine crypto exchange Lemon Cash to lay off 38% of its employees.
Marcelo Cavazzoli, the exchange’s CEO, recently revealed in an “open letter to the community” that Lemon Cash had laid off approximately 100 employees, or 38% of its workforce.
Despite the executive’s “great pain” over the decision, it may secure Lemon Cash’s survival. Because the company has no plans for future investments, cutting costs in the current unfavorable macroeconomic environment appears to be the only option.
The CEO went on to say that the collapse of FTX did not bring about the staff amendments. He did, however, reveal that Lemon Cash had previously received investment from the distressed trading venue and that it had a “tiny” exposure to Alameda Research.
The Argentine company, however, assured its over a million customers that it has no plans to recover that allocation. Cavazzoli thanked his team and promised to keep up the excellent work so Lemon Cash could maintain its market position.
Several other crypto-related companies have implemented similar measures in response to the industry-wide crypto winter, resulting in a wave of layoffs.
Gemini, a US-based trading platform founded by the wealthy Winklevoss twins, Cameron and Tyler, laid off 10% of its employees in June and another 7% in July.
Coinbase, one of the industry giants, laid off 18% of its workforce this summer. According to CEO Brian Armstrong, the world economy appears to be heading into a recession after a decade of economic boom, making such changes critical for the organization’s survival.
Many other companies have joined the list, including Blockchain.com, Crypto.com, Bybit, Huobi, and BitMEX.
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