Gemini Joins Growing List of Crypto Exchanges Cutting Staff Amid Downturn

Gemini is the fourth prominent crypto exchange to lay off staff since April, proving the market sell-off is starting to bite

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • Gemini raised venture capital funds as recently as February, but it still hasn’t dodged the slump
  • Crypto exchanges BitMEX, Buenbit, Bitso have all cut staff in recent months

Gemini, the crypto firm founded by ‘first bitcoin billionaires’ Tyler and Cameron Winklevoss, is cutting 10% of its staff.

In a Tuesday memo sent to Gemini employees, the twins cited the ongoing crypto downturn alongside macroeconomic and geopolitical factors as reasons for the downsize, reported Bloomberg.

The Winklevosses referred to the current crypto climate as a “contraction phase” that’s now “settling into a period of stasis,” a point in the market cycle which has come to be known as “crypto winter.” 

Bitcoin and ether are respectively down 37% and 51% in the year to date. Crypto’s total market capitalization has fallen for the past eight weeks in a row — from around $2.13 trillion to $1.23 trillion.

Gemini has several operational components, including crypto exchanges (both retail and institutional), custody services and over-the-counter trading. Its physical offices are closed today, and staff affected by the layoffs are to receive calendar invites for remote meetings to discuss separation packages (including healthcare benefits), according to Bloomberg. 

The New York-headquartered company will reportedly hold a larger meeting Friday to discuss its future. There’s no word on exactly how many staff members will lose their jobs; LinkedIn ranks Gemini’s headcount at a little more than 1,000.

The news of layoffs also comes on the same day as the US Commodities Futures and Trade Commission suing Gemini for allegedly misleading regulators over potential risks associated with bitcoin futures contracts the firm had hoped to launch in 2017.

Gemini most recently raised funds in February, according to Crunchbase, a private round contributed by Tim Draper co-founded venture capital fund Draper Dragon. Before that, a $400 million round led by hedge fund Morgan Creek Digital valued Gemini at $7.1 billion.

The cuts come despite a recent string of venture capital raises in the space, including Andreessen Horowitz’s mammoth $4.5 billion fund. Still, considering the flurry of layoff announcements over the past month, the ecosystem could soon see more cuts.

Gemini is not the first to lay off staff this year. In April, crypto derivatives platform BitMEX shed 75 employees (about a quarter of its workforce); Argentinian exchange Buenbit let go 80 employees — almost half of its roster — while Latin America’s Bitso also let go of 80 employees, representing 11% of its personnel.

While not strictly a crypto exchange, discount brokerage Robinhood (which has its own crypto division), also laid off 9% of its full-time employees in April, which is estimated to have been around 300 people. The crypto industry saw similar widespread downsizing throughout its previous crypto winter spanning 2019 and 2020.

The growing wave of layoffs hasn’t quite made its way to Coinbase, although reports surfaced last month indicating that the top US exchange would freeze hiring for two weeks and enforce cost-cutting measures after posting lackluster earnings in May.

On Thursday, Coinbase extended its hiring freeze indefinitely and said it would rescind a number of accepted offers.

This story was updated at 2:38pm ET on June 2 2022 with details of the CFTC’s lawsuit against Gemini, and again at 6:05am ET on June 3 2022 to include Coinbase’s latest statement.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

Why that the bull market might not start until 2025

article-image

August’s annual headline figure came in at 2.3% after an upward revision Thursday, so things are moving in the right direction 

article-image

MSTR’s stock price was roughly $248 at 2 pm ET Thursday

article-image

Ever since rates came off zero and fiscal deficits exploded, markets have started paying close attention to how the government is funding itself

article-image

Solana memecoins are collectively at an all-time high

article-image

Optimistic rollups like Optimism, Arbitrum and Base are seeing rapid adoption relative to zk rollups