According to a recent report by Bloomberg, Swyftx CEO Alex Harper recently warned his company’s employees that the cryptocurrency industry was likely to experience more black swan-type events.
As reported by U.Today, Swyftx, one of the main Australian exchanges, announced its most recent string of layoffs. The company fired 90 employees, which represented 35% of its entire workforce.
Major cryptocurrency exchange Kraken also fired a significant portion of its staff last week.
Following the sudden implosion of FTX and the downfall of its charismatic founder Sam Bankman-Fried, the cryptocurrency industry has plunged into a deep crisis.
As reported by U.Today, Binance CEO Changpeng Zhao recently warned that the cryptocurrency could face a 2008-style meltdown. Zhao believes that the exchange’s collapse could potentially trigger a domino effect.
Zhao recently threw shade at exchange rivals over mass layoffs in a now-deleted tweet. After facing some pushback, the Binance boss said that there are definitely problems with staff cuts, claiming that it’s about risk management principles.
Even before the collapse of FTX, “Black Swan” author Nassim Nicholas Taleb predicted that the cryptocurrency industry would experience a full-blown ice age.
Last week, BlackRock CEO Larry Fink forecasted that the majority of existing cryptocurrency companies would end up failing.