While one of its subsidiaries went bankrupt last week, another brokerage is linked to the Digital Currency Group (DCG) lays off 35% of its employees, showing more signs that the crisis still surrounds Barry Silbert’s empire.
Today it was the turn Luna. Founded in 2013, the brokerage claims to have more than 9 million clients in 43 countries. However, this was not enough for the company to withstand the pressure of the market.
The real estate agent’s LinkedIn shows that the company has between 600 and 962 employees. Therefore, we can estimate that Luno laid off between 210 and 335 people this Wednesday (25).
Massive dismissal of the Luno brokerage
With offices in six countries, no region has been spared the ousting of Luno, another subsidiary of the giant Digital Currency Group (DCG) that appears to be in financial trouble.
The company reports this in a statement “was not immune to turbulence” of the market, which affected it “Overall Growth and Revenue Figures.” However, he stated to the international media that his operations remain normal, i.e. without risk of bankruptcy.
“2022 has been an incredibly difficult year for the tech industry in general and the cryptocurrency market in particular.”
The big concern is the connection to the DCG. After all, two of its largest subsidiaries are also in trouble.
While Genesis went bankrupt last week, Grayscale still fails to convert the GBTC fund into an ETF. Another that seems to be in trouble is CoinDesk, which is already looking for solutions to survive while the crypto spring doesn’t spill over into summer.
As for DCG, the giant itself has already suspended dividends and is in danger of bankruptcy. Therefore, the market should pay attention to signs such as the mass layoffs at Luno.
The rise of Bitcoin did not bring peace of mind to companies
Since January 1, Bitcoin has increased in value by 38.7%, dragging other cryptocurrencies along with it. However, that wasn’t enough to reassure industry giants, who keep firing as if the crypto winter isn’t over yet.
Besides Luno, Gemini was another brokerage that had to downsize. In an announcement published this week, the Facebook twin brokerage firm laid off 10% of its employees, another massive layoff in recent months.
Overall, the cryptocurrency industry is estimated to have laid off more than 10,000 workers between 2022 and 2023, either to cut unnecessary spending or for worse reasons such as insolvency. Bitcoin has risen sharply as a result, but the domino effect still haunts entrepreneurs in the sector.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
