Kraken Crypto Exchange Cuts 30% of Workforce, Binance CEO Makes Indirect Tweet

Crypto Update
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Cryptocurrency exchange Kraken has announced massive job cuts, laying off 30% of its workforce or 1,100 people. Meanwhile, Binance CEO CZ warned users in a now-deleted tweet to be wary of platforms that “are making layoffs.”

on wednesday blog postKraken co-founder and CEO Jesse Powell said they are laying off about 1,100 people in an effort to “adapt to current market conditions.” He claimed that the cuts bring the size of the platform’s team back to where it was a year ago.

Powell cited slow growth that has been driven by “macroeconomic and geopolitical factors” as a reason for the poor performance. He added that the recent market downturn has reduced customer demand, reduced trading volumes and cut sign-ups.

“We slowed hiring efforts and avoided large marketing commitments. Unfortunately, the negative impact on financial markets has continued and we have eliminated better options to bring costs in line with demand.”

Established in 2011, Kraken is one of the largest and longest running crypto exchanges in the world. According to data from CoinGecko, it ranks 15th among centralized crypto platforms in terms of trading volume, with a volume of over $440 million over the past day.

Almost all centralized crypto exchanges have been hit by a wave of withdrawals amidst the collapse of FTX. In contrast, interest in decentralized options has reached record levels, with decentralized exchanges seeing highest trading volumes over the past few days.

Binance CEO Hints at Kraken’s Problems

At the same time, Binance CEO CZ indirectly hinted that Kraken may face problems due to resorting to layoffs. “Be wary of platforms that: 1. offer high APYs and/or 2. lay off,” he said. Told In a now deleted tweet. “If you don’t manage risk now, don’t blame others for the consequences later.

In an effort to reassure users, crypto exchanges have started sharing their Proof of Reserves. according to statistics accumulated Nick Carter, a partner at Castle Island Ventures and co-founder of blockchain data aggregator, said five exchanges, including Kraken, BitMEX, Coinfloor, and HBTC, have completed their proof-of-reserve audits.

Clashes between crypto exchange behemoths have become more prevalent lately. Just a few days ago, CZ attacked Coinbase citing some incorrect data. In a now-deleted tweet, CZ sparked controversy regarding Coinbase’s bitcoin holdings.

Coinbase CEO Brian Armstrong responded to CZ at the time, “If you see FUD out there – remember, our financials are public (we are a publicly traded company),” with a link to Coinbase’s Q3 shareholder letter. with.

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