Rain, A Middle Eastern Crypto Exchange, Layoffs Dozens Of Employees
The Russia and Ukraine war, inflation issues, and other factors have all contributed to the decline of the virtual currencies market. According to statistics from CoinMarketCap, the market valuation of digital currencies is currently reported to be approximately $1.22 trillion. It has resulted in a significant decline from the peak of more than $3 trillion that the market achieved last year. The factors that caused the downturn are still present, and the digital currencies sector is not showing signs of recovery.
Similarly, the market slump caused Rain, a crypto platform based in the Middle East, to dismiss its employees. Bloomberg reported employee layoffs were necessary as a result of a prolonged decline in cryptocurrency values and a corresponding drop in global markets. Downsizing its staff was one of the difficult decisions the company had to make to get through this uncertain time.
● A slew of Rain employees laid off
Rain dismisses a large number of its workers. According to LinkedIn estimates, the workforce of Rain comprises 251 to 500 employees. Crunchbase estimates the headcount at 501 to 1,000 workers. Several employees of Rain Financial Inc. have been fired as a result of the recent market collapse. There will be a negative impact on employees across different departments concerning this decision, revealed last week by management. As one of the participants in the round led by Middle East Venture Partners (MEVP) in January, Rain Financial raised $6 million.
● A Heavy Hit Has Been Dealt To Crypto Exchanges
During this market cycle, employee cutbacks have been a common practice among companies that trade digital currencies. Additionally, Gemini just disclosed that it will reduce its global workforce by 10%. The cryptocurrency market is presently in a contraction phase that is transitioning into a stagnation state. Due to the market downturn, several crypto industry competitors have changed their employment strategies. Further, this slowdown caused Buenbit to reduce its staff by 45% and Bitso to lay off its 80 employees. Similar to this, Robinhood previously reported that it would fire about 6% of its workforce. After Robinhood’s rapid expansion in 2021, the firm cited layoffs as a way to shrink the company size.
● A Highly Volatile Cryptocurrency Market Caused Bitcoin To Drop By 20% And Ethereum By 33%
Cryptocurrencies are largely to blame for their extreme instability. As the crypto market continues to decline, bitcoin dropped to roughly $17,749 and ether to around $897. Both Bitcoin and ETH have broken through significant price limits and are down to 20% and 33% respectively. Inflation blowing out of control and a slew of Fed rate rises are just two macroeconomic factors contributing to the devastation in the cryptocurrency industry. Crypto corporations are cutting out significant numbers of employees. On the other hand, solvency crises are threatening some of the most recognizable companies in the crypto sector.