Following the fallout of Three Arrows Capital (3AC), cryptocurrency exchange giant Blockchain.com closed its Argentine office, leaving 150 people Downsizing twenty five%.
Almost half of the layoffs came from Argentina (about 44%), and 26% and 16% came from the United States and the United Kingdom, respectively.
Blockchain.com lent about $ 270 million worth of crypto assets to 3AC. Blockchain.com expects to lose its investment as 3AC goes bankrupt.
In addition to closing the Argentine office, the company has abandoned all expansion plans. Blockchain.com said these measures need to be taken due to severe market conditions.
Blockchain.com
Many crypto companies chose to downsize early in the bear market, but Blockchain.com didn’t.
The crypto exchange platform Blockchain.com has been active since 2012. Almost one-third of all Bitcoin transactions go through Blockchain.com’s wallet products. The company was valued at $ 14 billion in the March 2022 funding round.
Celebrities like American hedge fund manager Kylebus and British tycoon Richard Branson are among the many who support Blockchain.com. At that time, the company was considered one of the most valuable crypto companies.
Ignition tendency
Many major crypto companies have announced layoffs since the bear market began.The tendency to fire was so widespread that the United States Financial Industry Regulatory Authority (FINRA) Announced that it is considering hiring among those who have been dismissed.
The first company to decide to downsize was Gemini. The exchange fired 10% of its staff on June 2nd and another 15% on July 19th. Coinbase followed Gemini’s first layoff by dismissing a new employee on June 4. Robin hoodBlockFi, and BitmexAnnounced a layoff next week.
These companies pointed to bear market conditions as the reason for the layoffs. Bankruptcy of 3AC caused further tension in the market, as giants like Celsius and Voyager Digital lent hundreds of millions of dollars to 3AC.
