- Kraken is among the first crypto exchange platforms to pioneer the Golden Age of Bitcoin alongside Mt Gox
- Over 1100 employees will lose their jobs to save Kraken from taking a nose dive due to the crypto crash
- FTX officially declared bankruptcy on November 28th 2022, and several hundred employees lost their jobs
The crypto ecosystem had a slow start at the beginning of the year, yet its adoption rate was consistently growing. African crypto traders rocked the headlines with their zeal and determination to place Africa at the top of the crypto ecosystem. There have been ups and downs within the year.
Various crypto exchange platforms suffered further losses from crypto volatility, while some suffered from crypto hackers. At the time, there was still hope for a better tomorrow. Unfortunately, no one could foresee the crypto crash that would ensure the entire crypto ecosystem. Various platforms have suffered, but in recent news, Kraken, one of the most extensive cryptosystems, had to cut back on its staff, firing at least 1100 employees. How far have the mighty fallen within the crypto ecosystem?
Who are Kraken
Within the crypto ecosystem veteran, crypto traders are accustomed to associating with at least crypto exchange platforms. This is often a strategic move to ensure that the likelihood of an ‘FTX crash’ does not occur with one’s entire capital. More often than not, the crypto exchange platform Kraken will appear on their lists. It is one of the largest cryptocurrency exchange platforms offering standard buying and selling cryptocurrency.
Due to its enormous reputation, it has various cryptocurrencies, including the typical market leaders, Bitcoin and Ethereum. To keep up with the stiff competition within the crypto ecosystem Kraken also offers users margin accounts and future trading risker products. This allows crypto traders to venture into other decentralized finance activities through some trading strategies.
Kraken is typically a crypto exchange platform that caters to beginners more easily. Its user-friendly interface makes it much easier for new crypto traders to understand the complex concepts of crypto trading.
In 2011, Jesse Powell founded Kraken in San Francisco, and it slowly grew. It was among the first crypto exchange platforms to pioneer the Golden Age of Bitcoin alongside Mt Gox. It still survived the waves of crypto volatility while maintaining its position at the top. Kraken supports individuals and institutional investors with competitively priced crypto trading. This ensures that their customers fully experience the ups ad downs of being a crypto trader.
Kraken has an alternative platform for its seasoned crypto traders known as Kraken Pro. This is an advanced version containing more tools, margins and features. Its consistent updates ensure that the crypto exchange platforms keep up with the latest trends within the crypto ecosystem. Both beginner and advanced crypto traders can easily earn through trading or staking. It’s essentially an ecosystem built to last. However, the recent crypto crash may spell doom for the crypto exchange platform.
Kraken suffers tough losses from the recent crypto crash.
This crypto winter has proven more fearsome than most crypto traders or exchange platforms anticipated. It has affected several crypto exchange platforms to the point of bankruptcy. Kraken is a victim, as it announced it was laying off about 30% of its staff. Over 1100 employees will lose their jobs to save Kraken from taking a nose dive due to the crypto crash. Jesse Powell made this announcement on December 1st 2022, a crude way to usher in the holidays.According to the blog post from the crypto exchange platform Kraken, the inspiration to make this decision came from the slowing growth caused by the “macroeconomic and geopolitical factors” that had muted customer demand and significantly lowered trading volumes. This is no surprise. Currently, most crypto traders are fearful and anticipate that another FTX scenario may occur.
Over the years, Kraken has thrived due to its broad clientele. Its primary mechanism caters for the need of both beginners and veteran crypto trades, and to do so. It required a massive workforce. Over the years, they have met such demands, but with the sudden silence and reduced trading rate, it’s unable to keep up. As a result, if Kraken hopes to remain alive within the crypto ecosystem, it has to ensure business continuity.
The damage keeps growing.
FTX officially declared bankruptcy on November 28th 2022, and several hundred employees lost their jobs. This was the final crack that spiralled crypto traders into massive fear. As a result, many crypto exchange platforms suffered one way or another. Either they lost most of their investments from FTX or are suffering from the lack of activity from their crypto traders.
Barry Silbert’s Digital Currency Group laid off about 13% of its staff in November. Several crypto exchange platforms, such as BlockFi, have opted to sue FTX.
Unfortunately, the reality is that 2022 may end at a significant loss and crypto traders may require to take a step back. Fortunately, it’s not the first time the crypto ecosystem has suffered such a loss; hence there is still hope that by 2023 a comeback is in due order.
Kraken, fortunately, shows that it still cares for its employees. The CEO of Kraken is offering a 16-week compensation as severance and will extend the affected employee’s exercise window.