Bybit's co-founder and CEO, Ben Zhou, revealed on Sunday that the company would be cutting back on staff as a result of the deepening bear market. The news was made just two days after Zhou declared that they were "bullish" about Bybit reaching the 4-year mark. Zhou contends that the crypto exchange needs to have the right organization and resources in place if it is to survive the market slump.
Zhou stated that the adjustments are a part of an ongoing reorganization meant to refocus efforts and that there will be cost savings. He continued by saying that maintaining efficient corporate operations and the security of customer assets is of utmost importance.
The layoff percentage is 30%, according to Colin Wu, a Chinese industry analyst. He added that fired workers would receive three months' pay as compensation. Wu added that 30% of Bybit's staff were let go in June. Zhou vowed that corporate activities would continue in a secure environment and attributed the cutoffs to the ongoing bear market.
His opinion is that recent bankruptcy cases like BlockFi, which filed for bankruptcy, and Genesis, which is rumored to be on the verge of filing are signs that, "from an industry and market perspective, we're moving into a colder winter than we anticipated."
"It's critical to make sure Bybit is well-equipped to negotiate the market slowdown and is agile enough to capture the numerous opportunities ahead. Tough times necessitate tough choices, he continued.
Not the First
Bybit is not the first cryptocurrency exchange to have such stringent controls. The first was Crypto.com and Coinbase; the former reportedly cut hundreds of employees. On the other side, the US behemoth reduced its personnel by 18% in June.
Businesses such as Gemini, Blockchain.com, Huobi, and others have done likewise. Kraken has added its name to the list by letting go of 30% of its workforce.
Dubai-based Bybit, a relatively young digital exchange that was established in 2018, has amassed some trade, mainly in derivatives. The exchange places 15th in terms of normalized trade volume in the spot market and ninth for open interest, which refers to options or futures that have not yet been settled, out of 64 derivatives exchanges.
Bybit sparked outrage a few weeks ago when it announced that it will continue to serve Russian users, defying mainstream finance and global regulators who are attempting to isolate Moscow in the aftermath of the invasion of Ukraine.
Despite Singapore's central bank's orders this week requiring licensed crypto platforms to comply with sanctions, Bybit stated that it is headquartered and registered in Dubai. As a result, the exchange maintains that it does not discriminate against cryptocurrency users based on their location or passport.
According to a Bybit representative, the company's staff is working hard to ensure that all users have equal access to its platform and that "their funds are secure as well as the best trading experience."
