Recently, the Binance CEO warned investors to stay away from financially suffering crypto exchanges
The crypto market declined more than 60% over the past five to six months. Major cryptocurrency assets like Bitcoin, Ethereum, and Terra dragged down the value of the entire market. When the market fell, its capitalization declined about ten times its highest value in 2018. The declination in the condition of the crypto market resulted in a disastrous storm over crypto businesses. Several, globally-renowned crypto exchanges suspended their trading due to volatile market conditions. Due to multiple macroeconomic downturns, cryptocurrency investors continued to suffer from financial losses. Recently, the Binance CEO, Changpeng Zhao, took to Twitter to offer advice to his followers and the crypto community after the recurrent cases where cryptocurrency platforms continued to block users from accessing or withdrawing their funds. He advised investors to avoid using exchanges that are undergoing financial crises. Here are some of the several crypto exchanges that are undergoing financial crises and should be avoided in tumultuous times.
Zipmex
Zipmex is a Southeast Asia-focused cryptocurrency exchange that recently suspended withdrawals of funds. The company informed its customers in a tweet on Wednesday, citing the volatile market conditions and the impending financial difficulties as the reason behind this step. This crypto exchange is just another victim of the drastic market conditions and should be avoided for transactions under current circ*mstances.
Celsius
Binance CEO, CZ, also cites the example of Celsius. One of the first cryptocurrency exchanges that barred its users from accessing its cash. Since Terra’s major crash, the network has been suffering from major financial crises. The platform still owes more than US$4 billion, based on reports pertaining to its bankruptcy filing.
Three Arrows Capital
Three Arrows Capital is one of the top crypto hedge funds that also filed for bankruptcy after its liquidation began in the British Virgin Islands. Its insolvency has forced major industry players to reconsider their operations services and limit customer withdrawals amid the sell-off season that seemed to catch even expert crypto investors off-guard.
Vauld
Vauld is another cryptocurrency exchange that suspended all withdrawals, trading, and deposits on its platform given rising ‘financial challenges’. The exchange reported that it witnessed approximately US$190 million worth of withdrawals when the market crashed, due to the collapse of TerraUSD, followed by Celsius’ withdrawal pausing.
BlockFi
BlockFi is one of the largest crypto lenders in the world that faced immense financial crises during the crypto market meltdown. Initially, the company declared that it would be laying off 20% of its total number of employees. BlockFi has been hit by the drastic changes in the crypto market and has experienced intense negative effects on its daily operations.
Blockchain.com
Leading cryptocurrency exchange Blockchain.com has reportedly laid off around 25% of its workforce amid severe economic downturns. The company has recently denoted that brutal bearish market conditions continued to tear down the financial condition of the company. The firm needs time to absorb its economic losses, before returning to normal.
BitPanda
Initially, BitPanda announced its decision to cut down its workforce, which triggered an unprecedented change in the market sentiments which were also catalyzed by the continued inflation. The company employed over 1,000 employees, which is believed to be cut down to around 700. It also revoked various job offers in order to cope with the current financial problems.
Crypto.com
Crypto.com is also one of the many crypto exchanges that decided to lay off about 5% of its company’s employees. The company took this initiative to ensure sustainable growth in the long term. The team is utilizing its strongest resources and is preparing for the next crypto market bull run that is about to happen anytime soon.
Gemini
Gemini is another eminent cryptocurrency trading platform that announced its plans to lay off a significant part of its staff due to unfavorable market conditions. Due to the recent crypto bear market conditions, the Gemini Trust business reportedly cut 10% of its employees. Gemini claims that the platform will refocus on products that are currently more important to the firm’s growth.
2TM
2TM is another popular cryptocurrency exchange that laid off 12% of its total number of workers. The company is the second-largest cryptocurrency exchange in Latin America by market volume. The existing changes in the global financial landscape forced the firm to go above and beyond to reduce its operating expenses.
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