Blockchain is the technology behind both cryptocurrencies and Web3. Yet, while one major user of blockchain, cryptocurrency is seeing dramatic falls, another user of the same technology, Web3 is seeing huge investments amounting to billions. Gemini, one of the biggest crypto companies founded by the Winklevoss twins recently announced that they would be laying off 10 percent of their staff.
On Thursday, the billionaire twins Cameron and Tyler Winklevoss said in a blog post that the industry was in a “contraction phase” that was also called “crypto winter.” They said that the phase had been “further compounded by the current macroeconomic and geopolitical turmoil.” The memo also noted that they were “not alone.”
Gemini, which came into existence in 2014, was valued at $7.1 billion, during its last funding round. PitchBook reported that it has 1,033 employees on its payroll. If it would layoff 10 percent of its staff, about 100 of its employees would lose their jobs, very soon.
Although Gemini, refused to respond when asked for comment by news outlets, its physical offices were closed, on Thursday. Those who would be losing their jobs today are expected to receive a calendar invite for individual conversations. The employees would then discuss separation packages and health care benefits. The remaining employees are expected to discuss the future of the company, on Friday.
Cryptocurrencies have been seeing a downward trend from the past few months but the recent collapse of the stablecoin TerraUSD and Luna has had a huge effect on the sector, as a whole. Other cryptocurrencies have also been collapsing like a house of cards. About half a trillion dollars were lost in market cap as almost all companies in the sector felt an impact of the collapse of TerraUSD. Some digital coins remain at about 50 percent of their highest value, last November including Bitcoin but a few of them have been almost totally wiped out.
As crypto currencies see a steep decline, Web3 is seeing a steep rise. Andreessen Horowitz recently announced that it was starting a $4.5 billion fund to invest in blockchain companies and startups while Binance announced that its new startup venture Binance Labs has raised $500 million to fund Web3 startups.