December 5, 2022

Winklevoss' Twin Cuts Gemini 10%, Says 'Crypto Winter' Here

Winklevoss’ Twin Cuts Gemini 10%, Says ‘Crypto Winter’ Here

Tyler Winklevoss and Cameron Winklevoss (LR), creators of crypto exchange Gemini Trust Co. On stage at Bitcoin 2021, a cryptocurrency conference that took place at the Mana Conference Center in Wynwood on June 4, 2021 in Miami, Florida.

Joe Riddell | Getty Images

Bitcoin billionaire Cameron and Tyler Winklevoss are laying off 10% of the workforce at Gemini, the first on the US-based cryptocurrency exchange.

Twin Advertise in a blog post On Thursday morning, the industry was in a “deflation phase” known as “crypto winter,” which was “exacerbated by the current macroeconomic and geopolitical turmoil.”

“We are not alone,” the note continued. Cryptocurrency exchange Queen Piece I recently mentioned that Revenue decreased by 27%. From a year ago, as was general use.

It’s been a tough few weeks for the cryptocurrency market. Half a trillion dollars were wiped out of the sector’s market cap as TerraUSD, one of the most popular stablecoins pegged to the US dollar, exploded overnight. It is unclear whether this latter path represents the next crypto winter (a multi-year bear market that occurs on a cyclical basis for the crypto asset class), although lower trading volumes on cryptocurrency exchanges is a sign that we may be heading in that direction.

The last so-called crypto winter lasted from 2018 to fall 2020 as the value of cryptocurrencies plummeted and layoffs proliferated.

Gemini – who has been around since 2014 and is now worth $7.1 billion As of the last funding round – it has 1,033 people on its payroll, According to the Pitchbook, which translates to about 100 employees affected by the layoffs today. CNBC contacted Gemini to request the exact number, but the press team declined to comment other than for the blog post.

As for the next steps, Gemini closed its physical offices today in order to protect employee privacy. Affected team members will receive a calendar invitation for one-on-one conversations about class packages and healthcare benefits. On Friday, the remaining employees will participate in a “company-wide stand” to talk about its future.

The memo says Gemini wants to focus only on products that are critical to its mission — and team leaders will assess whether their teams are “appropriately sized” for “current turbulent market conditions that are likely to persist for some time.”

“Today is a tough day, but one that should make Gemini better in the long run,” the brothers wrote in the staff memo.

Other FinTech Startups like Robinhood And BitMEX recently reduced the number of employees.

But even as crypto companies shrink their listings, venture capitalists continue to pour money into the crypto ecosystem. Andreessen Horowitz recently Announced a new $4.5 billion fund Dedicated to support crypto and blockchain companies, and Binance Labs (the company’s investment arm) raised $500 million For a fund dedicated to investing in Web3 startups.