Gemini Laying Off Another 10% Of its Workforce Again
Making harsh decisions to slash the workforce becomes common in a bear market. It is hard to stand still after having the cold blows of crypto winter. But does it mean the company will keep laying off one by one? One of the most popular crypto exchanges Gemini laid off its employees last year.
It is terrible news that Gemini, the Winklevoss-owned crypto exchange, decided to lay off another 10% of its employees in a third round of layoffs. 10% of the workforce, that is, 100 employees, will lose their jobs. They have to struggle to find a new job or do something else to make a living.
Negative macroeconomic conditions as well as unprecedented frauds by bad actors are reasons behind making this harsh decision. According to the Winklevoss twins, they have no choice, so they have to let go of their employees. Gemini is not the only one doing it in a hard time like this. Coinbase made the same decision to lay off another 20 % of its workforce.
While Gemini already deals with challenging situations, the US Security and Exchange Commission (SEC) charges Gemini and Genesis for offering unregistered securities to the people through Gemini Earn program. Many people got involved in Gemini Earn program that offers interest.
Crypto exchange Gemini and crypto lender Genesis made an agreement where Genesis borrowed $900 million via Earn program. Everything was going well until Genesis stopped the withdrawal of funds, and recently this lender filed for chapter 11 bankruptcy. Now users’ funds on Earn Program are locked in Gemini.
No one can tell how long it will take to get users' funds back from crypto lender Genesis. It seems simple and easy to get interest lending your crypto on a lending platform or crypto exchange offering this service. Is losing your crypto worth the interest you are getting?
If you lend your crypto to a third party and close your eyes to think it is okay, nothing will change. Lending crypto has its risk. Considering the risk is a must before making any financial decision. In a crypto winter like this, when crypto exchanges make tough decisions to survive, you should be careful about managing your crypto assets.
The truth is no one is going to care about your crypto more than you do to keep it safe and secure. 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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