A few short months ago, the cryptoverse was on everyone's lips, remember?
Bitcoin was pumping faster than a newly discovered oilwell, naysayers were becoming converts, Dogecoin and SHIB went on a race to the moon, and many an overnight millionaire was born. People quit jobs to buy Axies. Play to Earn became a huge deal. I, for one, was ready to throw in the towel and play my way to great wealth. Then there was NFTs and talk of the metaverse, and things were really kicking off.
The Super Bowl was dubbed the Crypto-Bowl as companies jostled to shell out millions in ads, and more than a fair share of ink was spilled assessing the effectiveness of ads displayed during the half time of America's most popular sporting event.
Before this, Crypto.com was making headlines, buying the Staples Center in Los Angeles, California, with a pretty visible name change on Christmas Day.
Everyone wanted in on crypto, and if you didn't have a your own wallet and a few coin, what were you even thinking?
But then change came overnight, and all that growth and popularity came to a screeching halt.
There were a number of factors that led to the sustained downturn, but for now let's focus on increasing inflation everywhere. All markets, including traditional industries, bled.
In crypto, combine this uncertain period with reports of bad actors essaying forth with increasing boldness, causing everyone- including advocates- to give tumblers and mixers the side eye, and then, when you think your cup is full, top it off with the LUNA-UST debacle.
With markets showing red for longer than anticipated, bears prowling boldly outside, and armchair pundits questioning the argument that crypto was a store of value or a hedge against fiat, crypto, for a while, was no longer sexy. FUD (Fear, Uncertainty and Doubt) began to take over. There was less money flowing in, lower volumes, and everyone whispering behind their hands about the next stablecoin to lose its peg.
And now, this is where we are. To be sure, the global economic downturn is not restricted only to the cryptoverse- quite a few industries have been downsizing. It's just that now we're hearing about big players in the crypto community.
A few days ago, there was quite an uproar when Coinbase announced it was actually reversing hiring plans, leaving quite a few employees to be jilted at the altar. Imagine celebrating leaving your last job only to receive a rescission letter from your new employer telling you that the love affair was over though the new sheets aren't even cold yet.
Heads were still spinning from this report when the Winklevoss twins raised their hands. Their cryptocurrency exchange Gemini was sending home 10% of its staff.
And now, before the requisite nine days are even over, the cryptoverse is abuzz with talk of another major player downsizing. This time it's Crypto.com.
According to a report by Blockworks (see citation below), Crypto.com is planning to carry out a targeted reduction of some 260 employees or 5% of its workforce. But before we go all ooooooh about the tech industry, my friends, remember, there are downturns everywhere, to be honest.
Things are a bit rough right now wherever you look, and it seems like it might be a bit rough for some time to come. Of course if you're going from a cushy job or even the promise of one to the unemployment line, this is no consolation. Employee, trader or investor, we all wish there could be better news. I sure do. But things are as they are, and in this moment, unless you are a bear enjoying the snow, we must each apply coping strategies to make it through the winter.
I truly believe that the season will change, and when it does, my friends, I want to be ready. In the meantime, I guess- if we haven't already- it's time to get our super thick coats out because it might continue to be brutal for some time yet.
Of course, what do I know? These are simply the rambling thoughts of a crypto observer.