A wave of headcount reductions is sweeping the crypto industry. In a major restructuring, blockchain development firm Consensys reduced its workforce by more than 20%. Joe Lubin, CEO of Consensys and co-founder of Ethereum, confirmed to Cointelegraph that 162 employees were affected.
Crypto exchange Kraken has also reduced its workforce, with reports indicating a reduction of 15% of the company’s staff, or almost 400 people. Kraken last laid off employees in November 2022, when it cut 1,100 people, or 30% of its workforce, due to “market conditions.”
Decentralized crypto exchange dYdX announced the dismissal of 35% of its staff, with its returned CEO Antonio Juliano suggesting the company needs a new direction.
Another crypto firm conducting layoffs was Nova Labs, the company behind Helium Mobile. According to reports, the firm cut 36% of its workforce weeks ago, citing a new focus on its core cellular business.
This week’s Crypto Biz also explores Coinbase’s earnings, Reddit’s sale of crypto holdings and Circle’s new fee structure for institutional investors and high-volume traders.
Coinbase shares drop after-hours on Q3 earnings miss
Shares of Coinbase Global dropped nearly 3.7% in after-hours trading on Oct. 30 as its third-quarter results for earnings and revenue came in below Wall Street estimates, with the crypto exchange blaming “softer market conditions.” Coinbase’s Q3 results saw revenue hit $1.13 billion, up 81% from the year-earlier quarter but missing Wall Street analysts’ forecasts of $1.26 billion by almost 11%. Its earnings per share came in at 28 cents, missing analyst expectations of 45 cents a share by 46.5%.
Reddit offloads most of its Bitcoin, Ether holdings
Social media network Reddit sold the majority of its cryptocurrency holdings in the third quarter, according to a recent filing with the US Securities and Exchange Commission. The majority of the sales originated from treasury holdings in Bitcoin (BTC) and Ether (ETH). According to the document, proceeds from the sale of cryptocurrencies were valued at $6.87 million for the three months ending Sept. 30.
Kraken restructures with new co-CEO, layoffs reported
Cryptocurrency exchange Kraken declared “a new day,” with the appointment of new co-CEO Arjun Sethi and a managerial shakeup. There was also an unconfirmed report that 15% of the staff was laid off. Sethi is also the co-founder and chairman of Silicon Valley venture capital investor Tribe Capital and has been a member of the Kraken board since 2021. He will share the top position with David Ripley. According to an X post by New York Times reporter Mike Isaac, the exchange cut 15% of its workforce. Isaac cited two unidentified sources with inside knowledge of the move.
Circle raises USDC cash-out fees, affecting large-scale redemptions
Stablecoin issuer Circle raised its fees for redeeming its USD Coin (USDC) for the second time in less than a year. According to an Oct. 29 Bloomberg report, the company has been collecting daily fees on redemptions of at least $2 million since September. In February, Circle introduced swap charges for redemptions above $15 million through its Circle Mint platform. The new fees begin at 0.03% per transaction and escalate to as much as 0.1% for withdrawals above $15 million, primarily affecting institutional investors and high-volume traders. The revision reportedly seeks to address increased demand for liquidity as more institutions tap into digital assets.
Before you go: As Americans gear up for the elections, the digital dollar comes back into focus. What roles will a CBDC and stablecoins play in shaping the future of the US economy?
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