Current downtrends in crypto prices have forced many digital asset service providers to reduce their staff to survive in a time when low trading volumes have reduced revenue. Despite the market currently facing significant lows, industry leaders are speculating there is no light ahead, and the market will remain low for the whole of next year.
Similarly, following the footstep of other tech companies operating worldwide, the crypto lending firm Celsius had to shrink its workforce by 25% due to liquidity crises, reported Israeli media outlet Calcalis on Sunday.
Notably, since the low prices of digital currencies have been devastating the spirit of investors, the American-Israeli lending firm Celsius has hired restructuring consultants and lawyers to make necessary changes to fight in a time of financial instability.
Without narrating the specific action the company could take, Celsius added in its official blog post on Monday:
We are focused and working as quickly as we can to stabilise liquidity and operations in order to be positioned to share more information with the community. We are operating with the entire community and all clients in mind as we work through these challenging times.
The team of Celsius further added on their site that they would keep updating its community with the necessary information and will work with the experts till the experts handle the issues. It reads:
We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues. These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.
Celsius Paused Withdrawals Due To Liquidity Issues
Also, on June 13, Celsius announced the cancellation of all withdrawals and deposits, citing the “extreme market conditions.”
Celsius is a crypto lending firm founded in 2017 and lends digital assets to receive a return. As of May 17, it has processed around $8.2 billion in loans with $11.8 billion worth in assets. After raising $750 million in last year’s funding round, the company’s valuation has now reached $3 billion.
Many other crypto businesses around the globe have taken a similar initiative to keep afloat. Recently, the Australian-based crypto gateway, Banxa, known for its service for changing crypto to fiat and vice versa, fired 30% of its work staff due to the downtrends. Expressing the reason behind this move, the company’s CEO, Holger Arians, reiterated that the company needs to minimize its cost. In addition, Mr. Arian speculated that the market would see these heavy price dumps for the next 12 months.
Other companies that reduced their workforce due to low trading volume in the bloodbath include Crypto.com and BlockFi. BlockFi laid off 20% of its staff while Crypto.com suspended 260 employees, equating to 5% of the whole team.
Featured image from Pixabay and cart from TradingView.com