For the crypto domain, the year 2022 hasn’t been very favorable, and the deleterious effects are visible in every nook and corner. The uncertainty and volubility of crypto paired with the overall economic slowdown have resulted in the value of crypto hitting rock bottom. Several crypto exchanges, including some leading ones, have been affected by this crisis. Not so long ago, Coinbase laid off over 1000 employees in response to the slow down, and now Indian cryptocurrency exchange Wazir X has confirmed that it had to lay off 40 percent of its employees owing to the bleak economic weather that has been wreaking havoc across industries. The crypto industry in particular is at the receiving end of this crisis. Read along to know more.
What and Why
When faced with uncertainties and crises that can have a detrimental effect on the company, the company will have to choose its priorities wisely. It looks like Wazir X is pretty clear about its priorities. The cryptocurrency exchange recently clarified the news about it laying off about 40 percent of its employees in order to “weather crypto winter.” Well, it has been one long-drawn winter after all.
“Our priority is to be financially stable and continue serving our customers. To achieve this, we had to reduce our staff to weather the crypto winter,” Wazir X said in a statement. Reports from Coindesk state that, of the 150-person workforce at Wazir X, 50-70 employees were laid off. These employees will be paid for 45 days, and they will no longer have to report for work.
The daily trading volumes of Wazir X which have been witnessing a steady decline further magnifies the bleak situation and the plight of crypto in general. The global economic slowdown is a major factor that contributed to the downward spiral of crypto. On top of that, the crypto industry in India is battling its own unique problems with respect to taxes, regulations, and banking access. The crypto industry faced an equally challenging time back in the year 2018.
“This situation is similar to the trying times the industry faced in 2018; at that time, we doubled down and built our innovative P2P engine. The crypto industry operates in cycles and the bear market is inevitable followed by a spectacular bull market. We will continue to focus on our customers’ needs and continue to build. We are confident that we will come out stronger when the bull market arrives,” Wazir X stated.