SNEAK PEEK
- Crypto lending firm, Genesis, fires 30% of its crew again in under six months.
- Genesis blocked customers’ withdrawals due to extraordinary market dislocation.
- Michael Moro, the CEO, announces his intention to transition into an advisory role.
Genesis Global Trading, a cryptocurrency lending platform, allegedly let go 30% of its staff in a second wave of layoffs in the last six months.
According to an article published in the Wall Street Journal on Jan. 5, Genesis laid off 30% of its workforce after experiencing losses on the platform due to loans made to Alameda Research and Three Arrows Capital. The company informed its customers on Jan. 4 that it aimed to cut expenses as part of its business strategy.
Additionally, a company spokesperson confirmed that Genesis has taken the difficult decision to reduce its foreign workforce as the company continues to experience unprecedented headwinds in the sector.
As part of its cost-cutting initiatives, Genesis announced in August that it would let go of 20% of its 260 employees. Michael Moro, the CEO, has also declared his desire to go into an advisory position.
Following the collapse of the significant cryptocurrency exchange FTX in November, Genesis Global Capital, the lending arm of the industry, restricted customer withdrawals, citing severe market disruption.
However, in a letter to its customers, Genesis expressed “confidence” that the company will see growth in the following year as a result of its efforts to “further refine our business.” It went on to suggest that narrowing in this way will provide the corporation more leeway in its lending operations.
In conclusion, it remains to be seen how the layoffs will affect Genesis’s ability to meet its commitments in the industry and whether it can remain competitive. The news is likely to add further pressure to the already volatile cryptocurrency market.
