The cryptocurrency lender Genesis layoffs another 30% of its workers under six months should be a big fear for us in cryptospace.
Last year August, the company laid off 45% of its workers which is apparently 260 employees due to the behavior of the market, I think then the downtrend hit them so badly before the FTX contagion spread. However, I was so surprised to hear another layoffs announcement last Wednesday, when the crypto lender Genesis say 145 Genesis employees will lose their jobs., 30% again to reduce costs and drive efficiencies simply means Genesis is going through some tough environment that will likely going to drawbacks all our journey in the space if Genesis consider bankruptcy
adobestocks
Although the firms had not announced it going to file for bankruptcy, but they are in the brink of collapse and that's why I said it should be a big fear for all of us.
To be candid, there are things going on within the firms that's likely causing issues of growth. Everyone knows Genesis is owned by Barry Silbert's Digital Currency Group (DCG), which is also the parent company of CoinDesk. But that not the issue here. It happened that Winklevoss brother the founder of Gemini come out in an open letter putting blames on the parent company DCG causing the losses and what is happening right now with Genesis. Meanwhile Gemini is one of Genesis creditors and it seems Genesis owes gemini almost $900.
When Cameron Winklevoss sent an open letter he indicated that Genesis parent firm DCG was acting slowly on a deal to return the $900 million owed to clients of Gemini's Earn program.
Aside that, the parent company DCG invested $114 million in Silvergate Capital to support the bank fintech deposit program. So the situation got worse when Silvergate Capital announced it going to layoffs 40% of its workers on Thursday.
I don't know if you remember, I have once said this that “we are going to tough environment in cryptospace this year” reason because the downfall of one crypto firms is affecting one another. I believe there is no how one of them will not get exposure to one another. FTX affect many, but to get what I'm saying right. FTX affected BlockFi, BlockFi affected an crypto exchange base in Dubia and so on..
If you don't know Silvergate Capital Corp that means you don't know the giant bank in California which is a crypto focused bank.
Silvergate lost almost half of their profit since 2013 in just a year. Silvergate loss $718 million as customers withdrew close to $8.1 billion of digital deposits in 2022 fourth quarter. This action really affect them and they call to cut 40% of work employees to balance up, but doing this to help themself make Genesis situation worse.
Genesis collapse will be another big issue this year and that will slid down the market.
