Octopus Network, a multi-chain cryptocurrency network based on the NEAR protocol, has laid off around 40% of its core team and reduced salaries for the rest due to the ongoing cryptocurrency winter, which will not end for at least another year, according to founder Louis Liu. The list of companies announcing layoffs in the cryptocurrency world due to prolonged, tough market conditions continues to grow. Octopus Network is the latest to announce a series of restructuring measures and what it has called a “Voluntary Departure Program”. Under this program, 12 of the 30 core team members will leave the project. “The remaining team members will accept a 20% salary reduction,” Liu said.
“We are currently in a bear market and it’s likely to continue for some time. Especially as the sector itself is expanding, welcoming traditional financial institutions, and becoming a part of the global financial markets itself, albeit the riskiest and most volatile part,” Liu added. “But most people will agree: the capital markets will return to slow risk-taking, which means the crypto winter will last at least one more year, maybe a lot more. Most Web3 startups won’t survive.”
Meanwhile, Singapore-based cryptocurrency trading firm Amber Group has decided to lay off 40% of its workforce and scale back its retail operations, citing a slowdown in the market. It has also terminated a $25 million sponsorship deal with Chelsea FC football club. Koinly, a cryptocurrency tax reporting platform, has laid off 14% of its team citing “intensification of the bear market”. Cryptocurrency exchange ByBit has reduced its workforce by 30%, while non-fungible token (NFT) platform Candy Digital has laid off a third of its roughly 100 employees.
The cryptocurrency market has been experiencing a downturn, with Bitcoin’s price falling significantly from its all-time high in late 2017. This has had a knock-on effect on the rest of the market and has led to a number of companies implementing layoffs and cost-cutting measures. However, it is worth noting that the market is highly volatile and prone to fluctuations, and there is always the possibility of a turnaround in the future.
