Crypto lending platforms are not the only ones suffering to stay operational during this, one of the scariest crypto winters of all time, where market volatility is peaking every day.
From crypto currencies to crypto exchanges all are finding it extremely hard to fight the aftereffects of FTX’s demise.
Moreover, the expected upcoming interest rate hikes and high inflation are some of the most important factors which have kept the cryptocurrency market captive and under strong bearish pressure.
On Nov.30 another big cryptocurrency exchange Kraken officially announced that they are finding it extremely hard to be sustainable and operational as the exchange lacks the funds to pay its employees.
To survive the current volatile period Kraken has decided to terminate the employment of contracts of 30% of its staff.
Kraken which previously, improvised flawlessly to accommodate all the crypto needs now finding it hard to keep going.
Kraken is cutting down Its Workforce
Amid the current market situation, the top leadership of the Kraken cryptocurrency exchange has finalized that company is about to offload almost 1,100 people.
Commenting on the situation Kraken’s CEO and co-founding member Mr. Jesse Powell, said that company had no other option but to triple its workforce previously as pressure was mounting from the customers to support all the crypto-related activities.
So, to expand the crypto ecosystem it was important to hire talented resources. However, the current woes have left Kraken with no other option but to downsize.
Lowering Trade Volume Caused Massive Disruptions
Things started to fall apart for Kraken as the trade volume on its exchange started to diminish following the collapse of FTX.
The Crypto market became highly volatile and cryptocurrencies plunged considerably. All these indicators have forced investors to either pull away their investment from the Kraken exchange or freeze their assets.
Moreover, a large number of investors gave up on the extreme selling pressure in order to avoid further depreciation in their crypto portfolios.
These disturbing outcomes have put Kraken in a situation where the company’s cash flow to run the basic operations became insufficient.
Kraken state that in order to serve the community with quality crypto products for a longer period it is important for us to cut down costs immediately.
However, in contracts to the current situation, back in June the company officially announced that Kraken will hire 500 more employees to share the burden of current hires.
Kraken is Not the Only Big Name Who Did This:
As the cryptocurrency market’s troubles continue to grow, the more bad news is constantly bulking up.
Most recently along with Kraken some other big names also decided to scale down their staff. Alone in the month of November Coinbase terminated 60 employees. Unchained Capital, a bitcoin-based crypto fund parted ways with over 600 employees.
But the good news is that Kraken is not leaving those 600 employees untreated, from paying separation charges to bonuses and from healthcare facility to career support, Kraken’s leadership has devised a thorough plan to help the community.
As of now investors seem confused because every second day a new rumor or a new development turns the market upside down.
As the overall markets have crumbled, trade volume on the majority of exchanges has declined considerably.
As of now, investors are pulling out their investments making it hard for crypto institutions to operate with fluency.
Investors with high cryptocurrency reserves seem more concerned as they are skeptical of the fact that institutional buyers like Kraken and others can buy from the market any soon.
As of Wednesday cryptocurrency market has gone up, and Bitcoin and other cryptocurrencies have also gained as their prices have increased.
It is important for the crypto marketplace if this growth-related bullish trend lives long. The current rise if lasts longer can help bring investors back to exchanges so the trade volume might increase.