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Crypto exchange Bithumb major layoff: Up to 50% cut of staff

Maya Mandz | Mar. 19, 2019
Crypto exchange Bithumb major layoff: Up to 50% cut of staff

March 19, 2019, | AtoZ Markets - The largest Bitcoin exchange in South Korea, Bithumb, has announced the dismissal of 50% of its staff. The crypto exchange Bithumb major layoff is considered as one of the outcomes of "crypto-winter."

Crypto exchange Bithumb major layoff was voluntary

According to a report published earlier in the Korean media, the Crypto exchange Bithumb due to major layoff will reduce its staff from 310 to about 150. Currently, the exchange ranks No. 2 in terms of trading volume in the world according to Coinmarketcap and has a daily volume of more than $ 1.5. billion. A company spokesman, when asked about changes in the company, stated that the majority of the dismissed employees themselves had already planned to change jobs.

“Voluntary retirement is part of our support program for former employees and is intended to provide assistance and training for job placement.

Apart from that, [Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses,” stated Bithumb official in his latest interview.

Bithumb layoff reason is the decline in trading volume

According to the experts, one of the main reasons for the cuts is the decline in trading volume and the corresponding lack of commission income, which has been too common recently in the cryptocurrency industry. Bithumb more than once was suspected of faking the volume of their trades. If he had the volume for which he claimed, his income would be more than sufficient, even during the whole crypto-winter.

Bithumb is not the only company that had to apply major layoffs

Bithumb joins other strong players in the crypto market, such as Dash, Steemit, ConsenSys and Shapeshift, who have resorted to major layoffs to stay afloat.

Steemit has reduced 70% of employees, after the fall in its cryptocurrency prices affected the cost of Steem tokens. The company has recognized that it is overly dependent on its assessment of the token.

Eric Voorhees from ShapeShift, an innovative stock exchange, also said that his company is overly dependent on the price action of cryptocurrency. He mentioned that this is the main factor of dismissals in the amount of about 30%. Voorhees added that ShapeShift was trying to expand too quickly and deviated too far from its original mission of providing cryptocurrency services.

Ethereum co-founder Joe Lubin was also forced to lay off 60% of employees, as well as abandon non-profit projects.

Crypto exchange Bithumb major layoff might help it stay afloat

None of the largest companies in the cryptocurrency industry is immune to price fluctuations, which continues to be a problem. Cryptocurrency volatility was both a blessing and a curse for exchanges like Bithumb. So far, all they can do is hope that the storm will pass quickly. For many, this means seeking financing and selling a significant portion of the company to venture capitalists.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.