The company's management said that it was forced to make this decision due to adverse conditions caused by a sharp decline in the cryptocurrency market, and, as a result, a reduction in the user base.. Most of the employees were fired from the customer support department. They received 12 weeks' wages in advance, three months' health insurance, and privileges to remain shareholders of the company.
During the June 2022 layoffs, CoinTracker revealed plans to increase headcount in the future, saying the company has the capacity and resources to weather another crypto winter.. The continued existence of CoinTracker depended largely on raising $100 million in Series A funding, which allowed the company to be valued at $1.3 billion.. Now CoinTracker has no plans to attract new employees in the next few months.
“Today we are operating in a crypto winter, an unstable economy with high inflation and rising interest rates.. Additional difficulties arise in connection with the tax legislation on cryptocurrencies. This environment is different from what we were in from mid-2020 to mid-2022. Our expectations for 2023 are not what they were last year,” said CoinTracker CEO Jon Lerner.
Cryptocurrency enthusiasts remain optimistic that waves of layoffs will be a thing of the past in 2023. However, already during January, about 14 cryptocurrency companies announced job cuts, and in total more than 2,900 employees lost their jobs.. So, at the beginning of the month, the Coinbase trading platform launched a large-scale wave of layoffs, citing the unfavorable situation in the cryptocurrency and stock markets.