NYDIG Cuts 33% Of Full-Time Jobs As Crypto Winter Bites

Bitcoin infrastructure service provider New York Digital Investment Group (NYDIG) is laying off nearly a third of its workforce amid a prolonged slump in crypto prices, the company has confirmed to The Wall Street Journal (WSJ).

NYDIG

Company executives notified employees affected by job cuts “as part of structural changes” in September 2022, becoming the latest digital asset store to downsize amid a cold crypto winter .

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The cryptocurrency exchange will cut 33% of full-time jobs, or about 110 jobs, to help weather tough economic conditions. Employees were told the company was looking to cut spending and focus on more promising ventures, the sources said.

“It’s like a trading desk mentality where nobody talks to anybody. You can disappear and no one will know for months,” a former NYDIG employee told CoinDesk.

NYDIG felt it needed to grow quickly in 2022 to compete in many industries and take advantage of soaring crypto prices, but the former employee said the company was apparently “overhired” even then. that the market was strong.

“NYDIG put all their eggs into this banking strategy, but they realized there was no way these banks were ready. They spent all that money telling a story that they would bring bitcoin to the masses. Their basic strategy was messed up,” he added.

NYDIG creates bitcoin-focused investment and custody products for institutional investors. At the peak of the crypto market in late 2021, it would have rapidly approached $10 billion in assets under management. The company has also partnered with leading banks such as US Bancorp (US Bank), Wells Fargo, and JPMorgan to offer bitcoin funds to their high net worth customers.

In December, NYDIG secured $1 billion in a growth capital round that valued the institutional crypto store at over $7 billion. The latest funding round brought the amount raised by NYDIG in 2021 to $1.3 billion. This amount was set to help the company advance its Bitcoin-oriented initiatives in various sectors, including asset tokenization and smart contracts.

In addition to these Bitcoin-related business initiatives, NYDIG, which is the cryptocurrency arm of Stone Ridge, is also looking to introduce an ETF product involving Bitcoin. NYDIG has already filed registration documents for the Bitcoin ETF with the United States Securities and Exchange Commission.

NYDIG is not alone in dealing with the effects of the crypto meltdown. In addition to this news, Coinbase, which cut around 1,100 jobs or 18% of its workforce, and Gemini, which laid off 10% of its workforce.

These exchanges join other crypto companies like Crypto.com, BlockFi, Bitso, and Mercado Bitcoin in Latin America to cut hundreds of jobs to ride out a downturn in the crypto sphere.

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NYDIG Cuts 33% Of Full-Time Jobs As Crypto Winter Bites


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