Crypto Lender Genesis Slashes 30% of Employees
Crypto lender Genesis decides to lay off 30% of its workforce in the second round. They are going through financial difficulties and it seems they do not have many alternatives. This is the second round of laying off employees, you cannot say for sure, this is going to be the last round of slashing of its workforce.
Genesis tried to raise capital to solve the ongoing financial difficulties they are facing, but their attempt to raise capital failed. After the collapse of FTX, it stated that they have no exposure to FTX. Unfortunately, when something happens behind closed doors, and there is a transparency issue, you just don't know what's going on.
When you know really know the real financial situation of the business, it already becomes too late. The thing is, Genesis got hit hard due to the collapse of the centralized bankrupt crypto exchange FTX. They had $175 million locked in an FTX trading account and that became history. Maybe having $175 million in FTX means no exposure to FTX!
Genesis laid off 20% of its employees in August 2022. Now they are slashing 30% of its employees. People who did not lose their jobs in the first round of slashing might think their job is safe. But when the second round of laying off comes out, 30% of employees are losing their jobs.
Do you think employees are not skilled and talented enough to do the job? Employees work hard to do their assigned jobs. Genesis shows appreciation for their work, talent, and skills. But they cannot work there anymore in spite of having skills and talent.
There are a lot of things going on. As you know, Genesis owes $900 million to the crypto exchange Gemini. Gemini customers who used earn program and keep their funds are in trouble. Crypto exchange Gemini and crypto lender Genesis have to solve this issue.
We are in a bear market and it does not show any sign that this is going to change any time soon. Because of the macroeconomic factors, things get tougher. It makes it clear that centralized crypto platforms are related to each other directly or indirectly. No matter how good those platforms look from the outside, they can be in big trouble once one entity collapse.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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