News posted in the Chinese version of Linkedin suggests, Bitmain maybe preparing to lay off 50% of its total staff, owing to bearish trends and falling crypto prices. Dovey Wan, a prominent Asian cryptocurrency entrepreneur, and insider drew attention to a tweet, which suggests that the Bitcoin mining giant may start a massive lay off in coming weeks.
The rumors are getting stronger since Bitmain valued at $10 Billion has recently closed its operations for its Israel based blockchain development center, which was founded in 2016. The insiders say the decision to close it highly anticipated Bitmaintech Israel was due to the recent crypto market downfall.
Gadi Glikberg, the former head of the Israel based operations said,
“The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
Why Major Exchanges and Billion Dollar crypto Firms are on a Staff Purge?
2017 was the dream year for whoever was related to not just Bitcoin, but any cryptocurrencies, as the prices touched an all-time high. The massive rise brought in a ton of attention, with everyone trying to get in the market in one way or the other. However, things started to change in the final quarter of 2018, but not in the way the crypto world was hoping for.
Hard-Fork of the BCH network, turned out to be the changing point, since many believe that the even set the bearish trend in the market with the majority of the currencies losing 80% of its market cap when compared with its highest point in December 2017. The prices fell so low, that mining Bitcoin was no more a profitable option. Many big firms related to cryptocurrencies and mining lost a significant chunk of their market cap too and now there is no other option left than laying off significant chunks.
The news of Bitmain laying off its staff might not have come in as a surprise for many in the crypto world as the conditions are really bad. The market has started to slowly recover, but chances of making a complete turn around are far-fetched. The market highs made many investors optimistic in their plans and they went on an all-out expansion mode, and the investments are going down with every bearish trend in the market.
Hopefully, this would serve as a lesson for many to hold their horses back and analyze both sides of the coin. Firms must be prepared for the worst days like the current crypto winter, so that the lives of employees who would be laid-off does not get affected, especially during the holiday seasons.