Gemini Cuts 10% Of Staff; Winklevoss Twins Say 'Crypto Winter' Has Come

For the first time Gemini, a cryptocurrency exchange and custodian that allows customers to buy, sell and store digital assets, has let go of 10% of staff, according to an announcement from its founders and twin brothers Cameron and Tyler Winklevoss.

According to the blog post from the Winklevoss brothers, the crypto market is currently in a "contraction phase that is settling into a period of stasis," which is commonly known as "crypto winter" in the industry. The brothers believe that the effect was "further compounded by the current macroeconomic and geopolitical turmoil."

"We have asked team leaders to ensure that they are focused only on products that are critical to our mission and assess whether their teams are right-sized for the current, turbulent market conditions that are likely to persist for some time," said the brothers. "After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce."

"We are not alone," the brothers added possibly hinting at other exchanges which have reported losses this year. Coinbase, the largest crypto exchange in the US, confirmed that revenue had fallen 27% from a year ago along with a fall in overall usage. The firm also reported a net loss of $430 million in the first quarter.

Coinbase also recently said that the firm will extend its hiring freeze for the foreseeable future and rescind several accepted offers in order to deal with current macroeconomic conditions.

"We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways," said L.J. Brock, Coinbase's chief people officer, in a blog post.