Operating at an enormous loss, the crypto sector will always look for ways to hold and cut salary costs. Crypto.com is the latest to add a workforce reduction of around 12% which affects approximately 180 people globally. In previous rounds of reductions due to falling token prices, there was no real modern reason for the cuts. The reduced amounts are now a direct result of the rapid development of AI technology.
The AI Pivot at Crypto.com
A social media platform X announced the news suddenly and confirmed it with Kris Marszalek, CEO of Crypto.com, referring to cutting back on employees as a necessary evolutionary development instead of a desperate move to help reduce costs. In addition, Kris warned employers of companies from around the world who do not adapt to immediate changes regarding artificial intelligence to do so or become extinct. In his opinion, the best way to move forward is to use the best resources offered by technology through artificial intelligence and the best human performance-based recruitment together, which will eventually eliminate any position where there is no opportunity to adapt to this new set of rules.
A Growing Trend Across the Sector
Crypto.com is far from alone in this strategic shift. A growing list of major digital asset and financial technology firms are actively trimming their staffing to become leaner. For example, the payments firm Block recently slashed its headcount by a staggering 40 percent. Company leadership explicitly noted that advanced intelligence tools have fundamentally changed what it means to build and run a business. Likewise, the cryptocurrency exchange Gemini has recently cut their employee count by approximately 30 percent, and their executives stated that AI is too powerful for them not to take advantage of.
Macro Pressures and the Broader Market
While artificial intelligence grabs the headlines, traditional economic pressures are still forcing many crypto firms to downsize. The foundation behind the layer-1 blockchain Algorand recently cut 25 percent of its workforce. Rather than citing automation, Algorand leadership pointed directly to a highly uncertain macroeconomic environment and a prolonged downturn in the crypto markets. Other major players are feeling the exact same squeeze. Leading crypto data firm Messari recently shuffled its top management and executed job cuts, while the development firm behind the Optimism network significantly reduced its staff as layer-2 struggles mount.
The Debate Over ‘AI Washing’
Industry analysts have begun debating the wide gap between the assumptions of these analysts and those of the companies being investigated and analyzed by these analysts. Industry observers have a lot of skepticism about this “AI revolution”, with many observers believing that corporate executives have simply engaged in “AI washing”, which is the use of the “buzz word” of automation and technological advancement as a public relations cover to hide what is essentially poor financial planning (or poor industry-wide business performance). Ultimately, skeptics argue that although these tools can be used to help perform basic functions, they do not provide the same level of impact that automating entire departments at scale would provide. Many believe that the recent layoffs are simply part of an ongoing traditional method of survival for businesses disguised as an innovative practice.
Surviving the Technological Transition
Regardless of the true underlying motivations, the employment landscape in the digital asset sector has permanently changed. Roles focused on repetitive tasks, preliminary compliance, and basic content generation are increasingly outsourced to software. As Marszalek emphasized in his public statement, executing this technological transition efficiently is absolutely critical for long-term corporate survival. Companies must now navigate a delicate balancing act, investing heavily in technology while managing the human cost of an automated future.
