The Bitcoin billionaires laid off 10% of their employers, attributing their decision to the current macroeconomic and geopolitical turmoil. The crypto exchange stated they would protect their dismissed employees by offering them separation packages and health care benefits.

Bitcoin billionaires Cameron and Tyler Winklevoss recently dismissed 10% of their workforce on crypto exchange Gemini. They attributed their decision to the arrival of the crypto winter.

The twins announced the layoff through their blog, clarifying that they are undergoing a contraction phase known as crypto winter. The brothers said that the current macroeconomic and geopolitical turmoil has further aggravated that situation.

Cryptocurrency exchange Coinbase also reported that its revenue had dropped by 27% since 2021.

TerraUSD (USDT), one of the most popular stablecoins pegged to the US dollar, crashed overnight a few weeks ago. That situation hit the cryptocurrency market severely, causing it to lose billions of US dollars.

Nobody is sure whether the critical situation in the crypto market marks the beginning of the crypto winter. However, the drop in trading volumes on crypto exchanges indicates that the market is heading there. The last known crypto winter began in 2018 and ended in 2020.

The latest funding round of the exchange Gemini revealed that its current valuation is USD 7.1 billion. Besides, it has about 1,033 people on its payroll, which means the recent layoff affected around 100 employees.

The Following Steps They Will Take regarding Dismissed Employees

The crypto exchange stated they would take the following steps to protect the privacy of their dismissed employees. The company will send affected team members a calendar invite to one-on-one conversations about separation packages and health care benefits.

Gemini seems to want to focus on products critical to its mission. Team leaders will assess whether their teams have the right size for turbulent market conditions that might persist.

The company highlighted that hard times are necessary to focus on innovation, a critical factor to their success. Their highest priority would be to treat those affected by the layoff with compassion and respect.

Likewise, FinTech startups like Robinhood and BitMEX have recently reduced their staff due to the situation in the market. However, even though crypto firms cut their payrolls, venture capitalists continue to invest in cryptocurrencies.

The Path of Cameron and Tyler Winklevoss

Brothers Tyler and Cameron Winklevoss have become famous for several reasons. In 2010, they sued Mark Zuckerberg, claiming that the founder of Facebook stole their idea. In addition, the twins participated in the pairs rowing event at the 2008 Beijing Olympics.

However, the most prominent factor is that the Winklevoss twins are cryptocurrency pioneers and billionaires because of Bitcoin.

In 2008, the twins reached an agreement with Zuckerberg for USD 65 million, combining stock and cash. In 2013, the brothers announced that they obtained about USD 11 million in Bitcoin through Winklevoss Capital.

The Winklevoss brothers may have acquired some BTC for as little as USD 10 per unit. At the time, there were rumors that they owned 1% of all Bitcoin in circulation. After they announced it, the price of Bitcoin dropped from USD 180 to USD 80 in a week.

When the price of Bitcoin reached highs of around USD 20,000, the brothers refused to sell their BTC holdings. According to Forbes magazine, they have about 70,000 BTC, accumulating more than 8,000 million US dollars.

By Alexander Salazar

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