Following the
announcement of significant job cuts by Binance, KuCoin was expected to join
the ranks of major cryptocurrency exchanges reducing their workforce. According
to reports by Wu Blockchain yesterday (Tuesday), the company was preparing to
lay off about 30% of its staff, or 300 people.
However,
the exchange’s CEO, Johnny Lyu, denied these reports on the same day,
dismissing them as mere rumors. He admitted that while the exchange continues
to grow, any potential cuts are part of everyday business in the rapidly
changing crypto industry.
The
cryptocurrency winter of 2022 significantly impacted the digital asset space.
After the pandemic boom and achieving record prices in 2021, user activity
began to decline along with the decreasing value of Bitcoin (BTC) and altcoins.
As a result, several cryptocurrency exchanges had to start cutting costs and
reducing the workforce that had expanded since 2020.
For
example, the Winklevoss billionaire brothers’ exchange, Gemini, has made cuts
to its staff three times already. Mass layoffs exceeding 1,000 people were also
reported at Binance. The information about cuts at KuCoin cited three different
company employees and seemed to fit into recent cost-saving trends.
“The
main reason is that the strict KYC policy was launched after being sued by the
United States, which led to a decline in the exchange’s profits,” Wu
Blockchain explained the move.
SCOOP: Following Binance, cryptocurrency exchange KuCoin will lay off 30% of its workforce. Confirmed by more than three internal employees. KuCoin has nearly 1,000 employees. The main reason is that the strict KYC policy was launched after being sued by the United States, which…
— Wu Blockchain (@WuBlockchain) July 25, 2023
The
response from the exchange representatives was not long in coming. KuCoin’s CEO
commented on the reports less than two hours later, stating that these were
rumors and that the exchange “is operating smoothly.” In the first
half of 2023, it increased the number of users and listings and focused on
gradual staff expansion.
However,
Lyu admitted that the cryptocurrency industry is changing rapidly. Therefore,
the exchange regularly assesses its organizational structure based on
employees’ performance.
“So it
is not layoffs, and it is all about making the organization more…
