Cryptocurrency industry suffers huge losses

cryptocurrency industry

This article was last updated on June 29, 2022

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Companies involved in the cryptocurrency industry have suffered considerable losses but they have no plans to reduce staff.

In the next months, the largest Dutch crypto firms plan to considerably increase their workforce. Dutch crypto firms want to keep growing despite Coinbase’s decision to lay off 18 percent of its workforce.

Bitvavo, the firm with the most rapid expansion, recruits more than ten new employees each month. “During the month of March, we relocated to a new location with 125 employees. In my estimation, we’ll have roughly 250 employees by the end of this year “says Mark Nuvelstijn, CEO and co-founder.

Cryptocurrency prices have plummeted over the past few months. This year, Bitcoin’s value has dropped by half. Cryptocurrency firms’ employees are feeling the effects of the recent market falls and news of layoffs in other countries.

This has come up with some of our workers, who had just begun working with us and in some cases had already migrated to the Netherlands,” explains Bitvavo’s Nuvelstijn. Our personnel has been assured that there is no cause for alarm and that we will continue to expand.

A second firm that’s hoping to recruit roughly 20 new employees this year is Litebit, which now employs about 120 people. Olivier van Duijn, a former executive of Marktplaats, said, “We are used to markets that are going down. Nowadays, he is the CEO of Litebit, a cryptocurrency trading platform. “Our approach has been hardly affected by market developments.”

He notices a few changes in the market. “It’s impossible to compare what we’re seeing in trading right now to what you saw this time last year. Wilder times were in the past. There are a lot of trades in a down market, but there are even more in an up one.” Litebit and other companies like it get a cut of every transaction.

As a result, he expects that startups in the cryptocurrency space will have a difficult time, particularly the smaller ones. According to my prediction, the number of firms will decrease as it becomes increasingly harder for them to comply with legislation.

Fewer new equity investors are entering the market.

The stock market is likewise seeing a decline in prices. Bux is a new venture that combines stock and cryptocurrency investment. This firm has also taken note of the market’s resurgence. In March 2020, the corona market dropped, and during the GameStop hoopla, we saw a number of new clients that we no longer see,” said Yorick Naeff, the head of Bux.

Cryptocurrency expert Toon Schraven, of both BTC Direct and BLOX, observes a shift in public opinion due to recent price declines. However, he does not want to talk about a ‘crypto winter’ just yet, but he can sense it in the air. “A tranquil phase begins every few years or so. That currently appears to be the case following the price rises in 2020 and 2021. If this is the case, you’ll need to alter your pricing plan. We are reducing our workforce this year, and we’ve changed our advertising plan as a result of this.”

There are now eight unfilled roles within the organization, and more are expected in the near future. “For example, new requirements necessitate the hiring of new employees. There is a demand for new developers.”

Some of the company’s growth comes from outside the country. Schraven, like Bitvavo and Litebit, aspires to expand its service to other nations in Europe.

Due to the fall of cryptocurrencies, many Dutch citizens have lost money. Research conducted by the AFM last year found that over 1.24 million Dutch citizens held cryptocurrency.

Mark Nuvelstijn from Bitvavo is one of the victims. At the beginning of May, the business journal Quote assessed his assets at 150 million euros; however, since then, the prices have plummeted even lower. The fact that he has suffered a loss has been confirmed, but he is unwilling to provide any further details. “I try to avoid it as much as possible. We’re so focused on increasing our business that we don’t give a second thought to anything else “he asserts,

Customers who haven’t been active in a long time are growing anxious, according to Nuvelstijn. “Do not obsess over the price of things. People do not, in my opinion, make better decisions as a result of this. I also encourage them to keep their investments to a minimum in order to avoid financial insecurity.”

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