This week, a major crypto exchange ShapeShift was forced to lay off 30 percent of the company’s workforce, letting go 37 employees.
In a letter to the company and to the users on the platform, ShapeShift founder and CEO Erik Voorhees said that the crypto winter had left the firm with no other viable choice but to adjust to worsening market conditions.
“Today, we let 37 employees go, reducing the size of our team by a third,” Voorhees said.
Not Wholly Negative: Lessons from Crypto Winter
Following one of the largest bull markets in the history of the cryptocurrency market in 2017, the vast majority of companies in the industry including ConsenSys, Bitmain, and ShapeShift aggressively expanded their services, often outside of their core business.
Calling Crypto a ‘Harsh Mistress,’ ShapeShift Announces Major Layoffs https://t.co/43Onc5GXri
— CCN.com (@CryptoCoinsNews) January 8, 2019
During that time, ShapeShift recorded a massive growth rate of 3,000 percent as the valuation of cryptocurrencies surged past $800 billion. Exchanges were seeing record volumes, and businesses in the industry received substantial venture capital money from prominent investors.
We ride high and fast during the ascents, growing at rates unseen almost anywhere else in the business world (ShapeShift grew 3,000% in 2017). And when the markets turn, the crypto recession is similarly dramatic and severe.
But, as the market eventually entered a correction phase and most crypto assets began to record 70 to 80 percent drops from their all-time highs, the market started to struggle; less venture capital money was coming in, revenues declined, and overall trading activity dropped.
With the Bitcoin (blue) and Ethereum (red) prices down more than 70 percent over the past year, » Read Full Article «