The trend of “tightening money” of major crypto exchanges continues with the latest name of Crypto.com, the platform that emerges with huge advertising deals in 2021.
On June 11, CEO Kris Marszalek of cryptocurrency exchange Crypto.com announced that it would cut 5% of the company’s staff, equivalent to 260 employees.
Mr. Marszalek’s reason is to “ensure long-term growth” while realizing the roadmap and optimizing profits.
This is a very surprising development when Crypto.com in 2021 is one of the exchanges that “spend the most” on advertising activities.
Some events can be mentioned such as the signing of a $175 million contract with the UFC; setting up a $100 million multi-national advertising campaign “Fortune Favors the Brave” with the appearance of actor Matt Damon; spent a whopping $700 million to buy the naming rights to the Staple Center stadium in Los Angeles.
The exchange recently also received criticism from users when cutting rewards for some services, causing the price of CRO tokens to plummet.
On June 13, it was the turn of the lending platform BlockFi to announce a 20% reduction in its staff of 850 people because of the market situation. In March 2021, BlockFi announced that it had raised $250 million at a valuation of $3 billion. However, at the beginning of June 2022, the company called for a funding round with a valuation reduced to only $1 billion.
Crypto.com and BlockFi also join the ranks of crypto exchanges that suddenly cut staff to prepare for the “crypto winter”, such as Coinbase, Gemini, BitMEX, Rain Financial, etc. DeFi platforms are bringing proposing to sell off assets to have more money to prepare for the upcoming difficult days.
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