The collapse of cryptocurrencies is dragging more companies than expected. If the tech industry is going through tough times, crypto is having a moment that could define its future viability. The layoffs are in the thousands, and we’re not talking about risky projects, but rather established companies with a proposition that goes far beyond mere speculation.

The Coinbase layoffs were the first warning. About 1,100 employees were notified of their layoff via a corporate email. This was the measure of Coinbase CEO Brian Armstrong announcing an 18% reduction in the workforce. A very difficult move for a publicly traded company with more than 6,000 employees.

But this month of June, which is now ending, has turned into a bloodbath for employees of crypto companies. Nearly 2,000 employees were laid off this month. In addition to those at Coinbase, we’ve seen layoffs with 10% of the workforce at Gemini; Crypto.com with 260 employees representing 5% of the workforce; BlockFi, which holds 20% of the workforce, or Buenbit, which has laid off about 80 employees, who make up 45% of the workforce.

Bitpanda, Europe’s largest stock exchange, announced 250 layoffs. Bitpanda, one of the European benchmarks in the crypto industry, also recently announced a reduction in staff. Bitpanda will retain 730 employees out of approximately 1,100 employees. 10% engineer team and laying off a large number of coordinators.

The landscape has completely changed in a few months. “Market sentiment has changed significantly in recent months due to geopolitical tensions, rising inflation and concerns about an impending recession. While we know the industry is cyclical, no one knows when market sentiment will change.” market”, summary from Bitpanda. In August last year, the Austrian company was worth about $4.1 billion.

“We are currently in the contraction phase of our industry entering a ‘crypto winter’ in what we call a shutdown. All of this has been exacerbated by the current macroeconomic and geopolitical turmoil,” explains the Winklevoss brothers, owner of the exchange. The twins are known for their conflicts with the first Bitcoin billionaires and Mark Zuckerberg.

There are still crypto companies that are betting to keep recruiting. Amid layoffs, some companies in the industry want to continue betting on growth. This is the case of Bit.com or Bit2Me. “These are tough times. Many traditional, tech, and even big companies in our industry like Coinbase are being laid off, but we’re not just laying off, we’re hiring,” explains CEO Leif Ferreira. Spanish crypto company. A message of optimism in the midst of a difficult crisis. Time will tell if the crypto industry can handle it or if its days of big investment are over.