According to Bloomberg , cryptocurrency exchange executives are preparing for a long winter of cryptocurrency layoffs. Reasons for concern are the decline in cryptocurrency prices from worrying highs, the fall of FTX, the collapse of many crypto platforms and the rise in interest rates, which discourage investors from investing. Buy risky investments.
A year after hitting a record high of $69,000 in November 2021, the top digital asset, Bitcoin, fell below $16,000 in November. The market value of the crypto sector fell from $3 trillion to around $900 billion. These problems have deterred digital asset owners and potential altcoin buyers.
Apart from the bear market, well-known cryptocurrency exchanges include Terra Luna, Celsius, Voyager, FTX, Alameda, 3AC, BlockFi, etc. has fallen or filed for bankruptcy.
Crypto currency exchange
Faced with the sudden change in wealth, cryptocurrency companies are canceling operations to cut costs and limit their growth plans. CoinDesk reports that more than 26,000 jobs have been lost since December 5.
The layoffs have been notable in recent months
Sam Bankman-Fried ruined Crypto's reputation
The dramatic rise and surge of the FTX cryptocurrency exchange has shocked the financial world. Disgruntled former CEO Sam Bankman Fried and others are said to have engaged in reckless business practices to avert imminent doom.
At the company's hedge fund, Alameda Research, Bankman-Fried and other employees of the Bahamas headquarters were accused of using client funds and digital assets. Unlicensed, FTX transferred $10 billion in client assets to save it from imminent bankruptcy.
In regulated financial institutions, this behavior is prohibited and carries serious civil and criminal consequences. FTX is based outside the US - in the Bahamas - and there are open questions about whether or not the digital currency is a security, the actions taken will be investigated.
Why should you be careful when looking for work in the crypto space?
The cryptocurrency sector is young and unstable. This is a warning to those working on or interested in orbiting space. This industry is highly unregulated, and considering what happened to FTX, you have to be very careful. Getting into the cryptocurrency business requires that you seriously consider your personal legal responsibilities, which is a daunting prospect. Coming from a company full of scandals, you wear a red letter across your chest while interviewing for a new job. If you want to work in digital assets, these serious questions must be considered.
Future regulations and their implications
The questionable activity of cryptocurrency players and the heavy losses of many gullible investors will lead to a new wave of regulation. So far, SEC Chairman Gary Gensler is in discussions with other US regulators about what needs to be done to initiate new rules and regulations. The accident occurred while they were asleep at the wheel.
Now, lawmakers and regulators have no choice but to impose strict regulations on a largely unregulated industry. Developing and enforcing regulations can be a lifesaver for cryptocurrencies. The public will be more comfortable with the cryptocurrency market knowing that safeguards are in place to prevent their customers from theft and exploitation. There will be a high demand for compliance, legal, risk, audit, anti-money laundering and data privacy specialists.
Despite the challenges in the cryptocurrency market, the industry and its backers have become accustomed to cycles of doom and gloom. Many strong advocates of decentralized markets will remain outside the US financial system. Leading investment bank Goldman Sachs is considering buying or investing in crypto firms, according to Reuters . Part of the reason is that the FTX boom has fueled an urgent need for an honest, transparent and trustworthy cryptocurrency platform.