The cryptocurrency market had a pretty tough year in 2022. It witnessed bankruptcies and dramatic collapses, including major players in the market. Although the market starts 2023 positively, the fallout from last year continues. For this reason, crypto companies prefer to shrink in order to survive.
Cryptocurrency exchange Bittrex lays off more than 80 people
Seattle-based cryptocurrency exchange Bittrex is cutting its workforce by more than 80 people on Thursday, citing market conditions. In a leaked email on Twitter, Bittrex CEO Richie Lai told his employees that the team had worked “aggressively” to cut costs and increase efficiency, but without success. The e-mail reads:
The market downturn triggered by multiple failures in the crypto ecosystem turned into a complete collapse by the end of the year. These events have caused us to reset our strategy and balance our investments with the new economic environment we are in.
A spokesperson said the layoffs affected at least some employees in most departments at Bittrex. Bittrex is one of many crypto exchanges that have announced layoffs following sharp drops in cryptocurrency prices and the collapse of the FTX exchange and other leading crypto companies.
Everlend shuts down due to liquidity issues
Solana decentralized finance (DeFi) protocol Everlend Finance is shutting down operations. It also urges its customers to withdraw funds from the platform. The company announced its decision on Twitter on February 1, stating that although it has ‘enough track’ to continue its operations, it would be a gamble under current market conditions. Everland’s team specifically noted:
Unfortunately there is no liquidity and it’s not just about Solana and the bill of lading market (which Everlend is 100% dependent on) continues to shrink. Moving forward in these conditions is a gamble. Although we had enough runways, we decided to stop now.
Everlend also noted that deposits made from core protocols are now in vaults and the app will only be in withdrawal mode until the funds are cleared. He also announced, “We advise our users to withdraw their funds as soon as possible.” The team explained that all collected and unused funds will be realized over the next two weeks, along with third-party contractor payments. The protocol will also open source its code base, allowing others to continue building solutions on it.
Cryptocurrency exchange closed its activities in another country
Kraken, a leading cryptocurrency exchange, has closed its Abu Dhabi headquarters less than a year after obtaining a local license. The move is part of a larger downsizing that will cause the company to lay off more than a third of its employees worldwide. Kraken laid off a significant majority of its team members, primarily based in the Middle East and North Africa, affecting approximately eight roles.
The crypto exchange has stopped its service for transactions in UAE currency, but customers located in the region will still be able to take advantage of the platform. A representative of the exchange stated that all deposits made by customers in dirhams will be automatically converted to dollars before being made available for withdrawal. In addition, customers can continue to use any other fiat currency that Kraken currently supports.
Bitcoin miner restructured his debt
cryptocoin.comAs you follow, many mining companies are restructuring their debt loads while others are facing bankruptcy. TeraWulf (WULF) has become the latest Bitcoin miner to restructure its debt obligations to curb negative cash flow. Miners such as Bitfarms (BITF) and Greenidge Generation (GREE) have paid off or restructured as the bear market and high energy prices over the past few months have hurt the industry. Some of those unable to restructure began Chapter 11 bankruptcy procedures, sold assets, or faced margin calls.
Under the restructuring signed on January 27, the amortization of the term loan will be replaced by a free cash flow clearing mechanism until April 2024, according to a press release on Wednesday. TeraWulf will be able to extend the maturity date of its term loan until April 2024 as long as it manages to collect the ‘required amount of equity income not disclosed by March 15, 2023’.
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