Amidst widespread layoffs in the industry, Hodlnaut has joined the list, trimming its workforce and seeking legal protection through judicial administration. With cost-cutting measures in play, the company has reduced its staff significantly. .
Gone are the days of thriving revenue, soaring prices, and abundant job opportunities as major crypto players now grapple with a financial crisis, slowing growth, and the necessity to drop employees.
On Friday, the crypto lender Holdnaut reported that it had let go of 40 employees, which represents 80% of its staff, leaving a skeleton crew to handle core operations as performance declines.
Another Bust
Hodlnaut had earlier announced a pause on all transactions, halting deposits and withdrawals on its platform.
Struggling with financial turmoil, Hodlnaut has filed for Singapore’s judicial management and awaits a decision slated for August 22, which could lead to the appointment of a temporary judicial manager.
Operating from Singapore, the cryptocurrency enterprise has revealed that it is currently collaborating with the region’s Attorney-General and Police Force.
During its court submission, Hodlnaut acknowledged a $190 million loss from UST investments but distanced itself from any dealings with Anchor.
3AC Pops Up Again
Despite no direct dealings with Anchor, Hodlnaut maintains intricate ties within the sector, likening its struggles to those of other failed lending platforms. Terra and Three Arrows Capital Earlier in the month, to stave off asset liquidation pressures from creditors, the company halted withdraws and sought judicial administration.
Vauld and Zipmex similarly find themselves in turbulent waters, having been granted a three-month reprieve by the courts to reassess strategic options.
While 2021 was filled with excitement for the crypto realm, 2022 has been marred by a cloud of doubt stemming from unfavorable macroeconomic influences.
Factors at the macro level have hit the financial and cryptocurrency markets hard, leading many to see 2022 as a tough year for the crypto world. Just days ago, Genesis Trading laid off 20% of staff, coinciding with CEO Michael Moro stepping down. Genesis holds a major claim against Three Arrows Capital. . The market fell into a decline In the midst of crypto's downturn, fear prevails among investors, pushing companies into bankruptcy while layoffs become widespread.
Mass layoffs have tarnished job quality, making the industry far less appealing to top talent, primarily due to the global economic slowdown and inflationary pressures.
In June, Gemini began this tumultuous chapter by letting go of 10% of its employees, a move connected to its reduced market activities at under 2% dominance.
The Bear Roars
The company didn’t specify the potential scale of the layoffs, marking the first reduction since launching in 2014.
Among the top US crypto exchanges, one has announced laying off 1,100 employees after expanding its team by nearly twofold within the past year and a half.
On June 14, Coinbase's CEO, Brian Armstrong, declared workforce reductions as a strategic response to stabilize amid the prevailing economic turmoil.
News broke on June 13 about the beginning of a layoff process where almost 20% of the workforce will potentially be cut.
Coinbase , one of the Company founders made it clear that economic conditions had hampered growth, leading inevitably to not only downsizing staff but also slashing marketing expenditures. Nicholas Say, originally from Ann Arbor, Michigan, has seen much of the world, living for years in Uruguay before settling in the Far East. His writing, widely available online, often focuses on practical advances and future tech.
Democratic lawmakers have petitioned the SEC for records pertaining to crypto ties involving the Trump family.
Aside from big exchanges like Coinbase and Gemini , BlockFi, a New York-based crypto lending platform The STABLE Act has successfully cleared a House Committee, setting a regulatory groundwork for USD-backed stablecoins.
North Korean tech experts are expanding their reach by infiltrating blockchain initiatives in the UK.
