Is the crypto ecosystem crumbling? Layoffs to withdrawals the chips start to fall

Updated : Jun 30, 2022 09:33
|
EJ Biz Desk

The turbulence of volatile financial markets can be felt in the crypto space too and it's not just about the falling prices of digital assets like Bitcoin.

US-based Coinbase went from its ambitious target of tripling its workforce in India to laying off 8 percent of its workforce in the country. This comes after its founder and CEO Brian Armstrong said on Tuesday that the company was laying off 18 percent -- which is about 1,100 -- of its employees amid worsening macroeconomic conditions.

US cryptocurrency lending company Celsius Network froze withdrawals and transfers citing "extreme" conditions, in the latest sign of how financial market volatility is causing distress in the crypto sphere. The crypto lending platform has a total user base of 1.7 million.

Speculation over the future of major cryptocurrency, hedge fund Three Arrows Capital is swirling after a cryptic tweet from the fund’s co-founder Zhu Su. The popular trader gave a vague update on Wednesday, hinting that Three Arrows Capital was looking for a solution to an issue it was facing. Unconfirmed reports from crypto traders claim the firm may have missed a margin call and is now in dire straits due to the recent meltdown in the crypto market.

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