Indian crypto exchanges start downsizing
Um thanks akandra for joining in help us understand. Youve been writing all these stories. Uh bring us up to speed as to what exactly is happening. Okay, so, sakshi recently, on friday, a cryptocurrency exchange called walt uh, let out a statement that it has laid around thirty percent of its workforce. It has downsized its workforce by thirty percent, taking people out people who were in the hr department and people who were in the marketing department, non core jobs, theyve reduced their workforce and thats, because blaming uh the exchange was, has been blaming the economic downturn, which has You know, which is you know taking across the world uh. The exchange is also blaming the fact that the cryptocurrency crash, which has happened recently, and the regulatory requirements with the by the government, has increased the compliance cost of an exchange in so in a way that earning revenues has become hard. Absolutely. Moreover, the retail interest has gone down, theres a steep decline in the retail in interest because of the taxation and whatnot and thats. Why there are no users, no users coming up to you, know, invest in cryptocurrencies or use their exchange, and hence the exchange had to let go of all these. So is this the first case that we have heard in india uh yeah. So this is actually the beginning of. What many experts claim to say is that this is actually the beginning of the crypto firing fever in india.
Uh, the world world exchange is actually a pretty decent name when it comes to crypto when its when it comes to cryptocurrency exchanges in india also help all our viewers really understand. Uh, you know how severe could this get? We understand what is uh downsized by 30? In terms of numbers, we still dont know how many people have been uh. You know let go of also when it comes to the kind of impact the entire crypto exchanges uh. You know world in india yeah, he is concerned. What could be the severity of it? If you compare it with the global perspective and what the cases we have seen there all right, so, as you just spoke of the global perspective, this is not an isolated incident in india. All of this has been happening across the globe because of the economic downturn because of the regulatory compliances which is increasing across the world, as well as the crash in the markets, some of the biggest players in america, and they are also big players when it comes To global crypto companies, these are crypto.com coinbase gemini, these let people go, thousands of people were let go uh, moreover, in india, coinbase also had its operations in india and it let go of around eight percent of its population. I mean of its. You know employer of its workforce, which were in india and more were talking about other countries when it comes to the middle east, which is actually posing as an oasis for crypto.
If they had the dubai eat summit and whatnot, and even crypto companies in dubai and in uae are letting people go rain. Financial and bitter oasis are some of the biggest exchanges that operate in that area and they have also let go for significant number of people. So this crypto crash has affected not just the trading volumes, but it has also impacted the people who actually work in the crypto sector. So how many people in total? Could you give us a ballpark figure work in the crypto exchanges in india? Oh, that would be hard to say, but there is a significant amount of people who work not just in the exchange business, but also when it comes to blockchain firms when it comes to, you know, met hours companies when it comes to companies which are building nfks And infrastructure for cryptocurrencies and whatnot, so there is a significant amount of people who work in the space. The thing is, i, i believe, and also many experts say, that people who work in these crypto companies, which are also a part of you, know the big tech, be it ibm, albeit infosys. Wipro and all these people might not be impacted as much as the people who actually work in the new age, crypto companies. You know, because these big tech companies would always be able to retain their people. They might just transfer them internally, but when it comes to the new age, crypto companies which popped up a lot in india in do you know in the recent boom and the start of boom and what not so many people, a significant number of people are working In them – and they could actually be impacted by this right, so we are talking about a severe funding crunch being faced by the crypto currency agencies, the exchanges and the world here because of the crash because of the volumes dipping very very sharply.
So what could this also mean for these exchanges in terms of the kind of spends they have been doing now? Weve been seeing some of the crypto currency exchanges really spend massively on their advertising on marketing on several big events, be it sporting events or other contests across india. Weve been seeing that happen over the last two or three years. So what happens to those now or are those plans also getting shelved off yeah? So the thing is actually all these crypto companies had very aggressive marketing and advertising policies. You know used to push their products really really aggressively and up until feb or maybe january this year, when the asci, the advertising standards concert of india sent them a stinker that theres a certain amount, since these are unregulated bodies right. This whole market is unregulated and you shouldnt encourage investors to be a part of unregulated markets which are so volatile, as we just saw. They crashed so badly from 3 trillion to 900 billion in the past six to seven months. Yes, so after that there was, you know some people, exchanges stopped advertising as aggressively and so thats the case of indian exchanges. They were already reducing their advertising cost because of the ascii stinker which they received earlier this year. But when it comes to international exchanges, which are outside the purview of india, they also employed aggressive marketing campaigns. They also, you know, bought sporting teams. They bought sporting arenas named them.
After that exchange, one of one big exchange was ftx, which did the same yeah, and now it has come out of all those sporting events or now it has jumped out of all those deals, because you know they dont have money anymore, so yeah. What i also wanted to understand, weve, been reading a whole lot about the fears of crypto winter setting in crypto winter, meaning a long period of very, very low prices of cryptocurrencies, and a kind of a bare phase is what we talk about in the stock markets. Uh are those fears for real? What are you hearing from experts here? Thats true one of the one of the founders of one of the biggest crypto exchanges in the world, financed the founder, uh chiang ping. Zhao himself said that maybe this cryptocurrency cycle has entered its beer phase. The winter has come for cryptos, moreover, other people as well, when they let people go. This is actually one of the reasons which they put forth, that its because of the crypto winter, which has set in thats the reason that theyll have to reduce their workforce. Uh. Also many experts and financial commentators are also highlighting the fact that crypto maybe has a four year or five year cycle. Okay – and this is the beginning of the bust of the krypto cycle, its okay, its no longer in its boom phase anymore. That sounds absolutely scary. On that note, well wrap it up right here, but what seems to be a bad phase or a bare phase or a crypto winter setting in could definitely be realized, is being talked about and among all the crypto experts right now, a bear cycle for cryptos, like Gansha pointed out lasts about four to five years, and if it is the beginning of that, the pain can only aggravate from here.