Kraken Lays Off 1,100 Employees
Well we have some more bad news in the crypto space. Crypto exchange Kraken has laid off 1,00 employees or approx. 30% of their staff. Kraken, the world's third-largest crypto exchange by volume has fallen victim to this bear market.
Co-founder and CEO Jesse Powell said,
That slowing growth, prompted by "macroeconomic and geopolitical factors," had muted customer demand, lowered trading volumes and cut sign-ups.
Bear markets has a way of slowing down new sign ups and drying up trading volumes so that's expected. What I find so troubling is the lack of planning for bear markets. He went on to say,
"We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us. This reduction takes our team size back to where it was only 12 months ago."
I get so frustrated at the boom and bust cycles we have in business. Proper planning and resourcing keeps businesses for massive hiring and firings. However, that means at time you will be slight over staffed and understaffed depending on the conditions. Executives can't stand the overstaffed part so they end up not planning well.
With that rant done how does this news impact the crypto space. Well obviously there is the layoffs, but it adds to the fears around collapse of crypto. With FTX, Crypto.com and Luna all going belly up this news makes one wonder about the stability and safety of your money in Kracken. Powell said remains extremely bullish on crypto and Kraken, but can he be trusted? I for one don't have any assets on Kracken so I don't have much skin in game other than any fallout if there was an issue. For the moment Kracken must have some money because they are offering 16 weeks of compensation as severance and will extend the affected employees' exercise window.
If you have money on Kraken let me know how you feel about this news.
Posted Using LeoFinance Beta
