American crypto companies have suspended hiring of new employees and are cutting advertising costs due to falling prices for cryptocurrencies, writes The Wall Street Journal. In the past few weeks, the world’s largest cryptocurrency exchange Coinbase Global Inc. canceled offers for candidates who successfully passed interviews, and said it would slow down the pace of hiring new workers. Another crypto exchange Gemini Trust Co. announced a reduction of 10% of the staff, citing the effects of the market downturn. According to the research ManpowerGroup, the top three employers in the US cryptocurrency market are Block Inc. (SPB: SQ), Coinbase and Gemini. At the same time, between November and April, crypto companies doubled the number of people hired compared to last year, but in May the pace slowed down. The reason for the suspension of employment is the fall in prices for cryptocurrencies, provoked by a decrease in trading volumes in this speculative instrument after raising the key rate by the US Federal Reserve, notes Kavita Gupta, founder of the investment Delta Blockchain Fund. Since November, the price of bitcoin, the most popular cryptocurrency, has fallen by 55%, and the value of the entire cryptocurrency market by 59%. As of 13:50 Moscow time, the bitcoin quote was $29.976 thousand, which is 0.54% less than the value of the previous day’s trading. Another area where crypto companies have started cutting costs is advertising. In April, a total of $10 million was spent on these purposes, which is the lowest figure since September, according to data from MediaRadar. At the same time, only four companies accounted for most of this amount – Coinbase, FTX, Crypto.com and eToro Group Ltd. Other companies spent a total of only $1 million. Meanwhile, not only crypto exchange operators, but also mining companies are suffering due to the fall in prices for cryptocurrencies. Their combined daily revenue has shrunk by about 56% since November to $27 million, according to estimates by market research firm Glassnode. However, not all industry representatives have experienced problems. An example for the rest is Hut 8 Mining Corp., which expanded its range of services, including the repair of mining rigs, and increased the stock of funds, anticipating an inevitable decline in the market. “This decision was based on the theory of historical cycles. The market would inevitably enter a bearish trend,” said Jamie Leverton, head of Hut 8 Mining. Source: FINMARKET.RU

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