What’s Going On in Crypto Companies in 2022? Preparing for a Crypto Winter

​​It’s no secret that the crypto industry is in a bit of a slump at the moment. Prices have been down for months, and many companies are struggling to stay afloat. But what does the future hold for crypto companies?

In this article, we will take a look at some walking crypto winter trends and define what it means for the future of the crypto world.

Mass Layoffs At Crypto Companies in 2022, is the Largest Crypto Crashing?

In the past few months, we have seen a lot of changes in the crypto industry. Some of these changes have been good, while others have been bad.

One of the biggest changes that we have seen is the mass layoffs that have happened at crypto companies in April 2022. This is definitely a trend that we are seeing more and more of, and it is one that is likely to continue into 2023.

So far, some of the biggest crypto companies to lay off employees include Coinbase, Binance, Kraken, and ShapeShift. These are all companies that have been hit hard by the bear market, and they are all cutting costs in order to stay afloat.

In particular, Coinbase has fired 1,100 employees due to over saturation. The company also created a talent hub for those employees who have been laid off to help find new positions. Individuals on the hub include in compliance analysts and financial-crime investigators, among others.

Crypto exchange rescinded several job offers, such as for a know-your-customer onboarding associate and compliance associates. However, developers, testers, and technical engineers working in the direction of security were not fired at the company.

In the same time, Gemini released 10% of its staff in June, saying the market’s downturn affected their finances and resulted in departures from the company. The company’s director of business operations and intelligence, and head of risk, both left in recent months.

Representatives for Gemini declined to comment. In a June blog post announcing the layoffs, Gemini’s founders, brothers Cameron and Tyler Winklevoss, said the job cuts were a response to contractions in the crypto market, so they are focusing on only products that are absolutely necessary.

Cutbacks over the past few months have also taken place in other crypto companies such as Huobi, Crypto.com, BitMEX, Celsius, and others. On average, the crypto industry has lost more than 2,000 specialists in different countries of the world since the beginning of the year.

But is everything really so pessimistic?

According to LinkedIn, Indeed and CareerBuilder data, over 1000 new jobs appeared in the crypto industry from March to July 2022. Most of the jobs appeared in new crypto projects that continue to develop actively. As you can see, the layoffs occurred mainly in large companies, where the staff consists of several thousand employees.

Promising projects like the Trustee Plus are actively continuing their work, strengthening the team with the best specialists in the field of engineering, crypto development, testing etc.

Trustee Plus is a new generation NEO crypto bank that revolutionizes crypto payments. The wallet is available as a mobile app on the App Store and Google Play. With it, you can exchange and replenish your cryptocurrency account with 0% commission. You also get access to the NFT market and zero fees on the network.

Positive development trends during the crypto winter are also observed in other projects, such as Solana, Flow, Near and others. This means that much remains behind the scenes while the news is full of mass layoffs.

Fears Of Recession And Crypto Winter 2022

Analysts believe that the current wave of cuts and the fall of projects like LUNA or Celsius is a consequence of the recent rapid growth of the crypto industry and world’s economic hardships.

In 2021, not only NFT and DeFi were in trend, but also the metaverse, as well as stablecoins. The industry has grown exponentially, and now the market is stabilizing and crypto projects without a sustainable economic model are optimizing their “bloated” costs.

In particular, after rising to a record high above $3 trillion in November 2021, the cryptocurrency market has plummeted to about $920 billion, a 60% drop this year. Low interest rates and government stimulus measures fueled skyrocketing cryptocurrency prices during the pandemic, but after hiking interest rates to curb inflation, investor sentiment was battered and the crypto market has turned into one of its worst halves ever. Accordingly, the current situation is also related to the growing key rate of the US Federal Reserve and inflation.

Analysts believe that the risks of an economic recession may decrease in Q3–4 2023, which will stabilize financial markets. From that moment, the completion is predicted of the crypto winter and the return of the market to its previous positions.

Future of Cryptocurrency in 2022–2023

Earlier, we published a detailed guide on how to survive during the fall of the cryptocurrency market. Use the tips to keep your savings and increase even in an economic recession.

At the same time, many investors, and crypto enthusiasts want to understand what is happening with the crypto industry and what to expect after such high-profile company crashes and mass layoffs.

It is important to realize that during the crypto winter, most investors, and traders go into standby mode.

This is characterized by several factors:

• Active diversification of assets and transfer of part of the savings to reliable stablecoins;
• Investments in crypto assets with long-term prospects;
• Reduced risk through the use of more secure wallets and payment services;
• Cost optimization for blockchain transactions.

You can reduce crypto trading costs and ensure the security of your cryptocurrencies with Trustee Plus. Enjoy the best cryptocurrency transaction experience with instant transaction and 0% fees for transfers.

This will help you wait out the crypto bear market that could last until Q3-Q4 2023. Now is the time to make a choice in favor of long-term investments that can bring the maximum profit in a bull rally.

Final Thoughts

The crypto world is constantly evolving, and it can be hard to keep up with all the changes. However, one thing is for sure: there are some big things happening in the world of crypto in 2022. From new regulations to exciting new projects, there is a lot to look forward to. So if you’re interested in keeping up with the latest developments in the world of cryptocurrency, make sure to stay tuned for more news and updates.