JOB CUTS DUE TO CRYPTO WINTER: GEMINI
The winter of crypto is beginning to contribute to several crypto trades, and Gemini is the latest to take action to manage the current market conditions.
For the year so far, bitcoin (BTC) has been up 34% and, significantly, down 54% from November's high of $ 68,979.
The bearish trend in the entire crypto market has left the crypto market total by $ 1.770 billion from November 10 to a market capitalization of $ 3,009 billion.
Crypto Exchange Gemini Announces Payment Reduction by 10%.
On Thursday, Gemini founders Cameron and Tyler Winklevoss announced plans to reduce staff by almost 10%.
Co-founders cited the "crypto winter," as well as the turmoil in the world and the current state of the macroeconomic environment as contributing factors.
In response, the exchange plans to focus exclusively on key products in anticipation of volatile market conditions.
According to the proclamation,
"After careful consideration, we made a difficult but necessary decision to part with about 10% of our staff."
The proclamation went on to say,
"We have closed all our portable offices today."
Gemini is not the only crypto-currency exchange for payroll.
This week, Coinbase reached out to the news, announcing an extension to its suspension of employment. In addition, as reported by Reuters, Coinbase plans to "withdraw the amount of donations received to address the current economic situation."
In May, Coinbase entered the Fortune 500, based on revenue for 2021. As reported by FX Empire, Coinbase earns more than 85% of its trading revenue. The crypto winter continues to weigh heavily on trading volumes, leading to first-quarter earnings and the decision to suspend employment.
For Gemini, the situation worsened after reports from the US Commodity Futures Trading Commission (CFTC) accused Gemini of making false and misleading statements.
US Commodity Trade Commission Charges Gemini
On Thursday, news hit the CFTC accusing Gemini of "making false and misleading statements about a future bitcoin contract a company was pursuing in 2017."
According to Reuters,
"The organization claims that Gemini, a crypto trading company led by Cameron and Tyler Winklevoss, has broken the rules of the asset management organization, and is seeking public fines and other remedies."
Reuters continued to report,
"Gemini officials" know or should not have known that the statements and information transmitted or omitted "by the company are false or misleading as to how the proposed future bitcoin contract could be easily implemented, according to the supplement."
And Gemini answered and said,
“We have an eight-year history of asking for permission, not forgiveness, and we always do the right thing. We look forward to proving this in court. ”
The CFTC comes at a time when the SEC is trying to file a lawsuit against the crypto industry.