• Protocol Labs, the creator of Filecoin, announced that 21% of its staff will be laid off due to an „extremely challenging economic downturn“ in the crypto industry.
• Other crypto-related businesses such as Blockchain.com, Huobi and Gemini have also made layoffs to weather the ongoing crypto winter.
• The native cryptocurrency FIL is currently ranked #35 based on market capitalization, having gained 65.7% against the U.S. dollar in the past 30 days but still down 97% from its all-time high of $236 per coin.
Protocol Labs Announces Layoffs Amid Crypto Winter and Economic Downturn
Protocol Labs CEO Juan Benet published a blog post on Friday announcing that 21% of the company’s staff will be laid off due to an „extremely challenging economic downturn“ in the crypto industry. Benet emphasized that it has been especially hard for the crypto sector during this macro winter and potential longer than expected dip in demand for digital currencies and blockchain services worldwide.
Cuts Jobs in Response to Macro Winter and Crypto Market Decline
Protocol Labs is not alone in making cuts as other cryptocurrency and blockchain-focused companies such as Candy Digital, Blockchain.com, Opensea, Huobi, and Gemini have also reduced their workforce numbers recently. In his Friday blog post Benet noted that although they worked hard to avoid layoffs it was necessary for them to focus their headcount against the most impactful efforts for their business moving forward.
Filecoin’s Native Cryptocurrency (FIL)
The native cryptocurrency FIL is currently ranked #35 based on market capitalization with a global trade volume of about $136 million over the last 24 hours. FIL has gained 65.7% against the U.S dollar over 30 days however it is still down 97% from its all-time high of $236 per coin which was reached on April 1st 2021. At 3:30 pmeastern Standard Time Saturday Feb 4th 2023 Filecoins (FIL) market valuation was approximately $2 billion USD according to Coinmarketcap data online .
Crypto Industry Widespread Layoffs
The industry-wide layoffs began last year and have continued into 2023 with many other cryptocurrency businesses facing similar fates when navigating through these difficult times . Despite these challenges Protocol Labs are hosting a “PLGO All Hands” meeting on Monday to further address any remaining questions or concerns employees may have following these cuts .
Conclusion
Overall , Protocol Labs joins other leading crytocurrency businesses like Blockchain , Huobi , Gemini who are all partaking in layoff processes due to long term effects caused by Covid 19s macro winter effecting cryptomarkets across industries globally . Although there have been some gains made by Filecoins native currency (FIL) with a 65 . 7 % increase over 30 days it still remains 97 % below its all time peak at 236 USD per coin back in April 2021 .