Middle East

The volatility across the cryptocurrency sector seems to continue affecting the operations of crypto companies. One of the recently affected companies is the Rain exchange, one of the Middle East’s largest cryptocurrency exchanges.

Rain exchange trims jobs amid crypto winter

The cryptocurrency sector has been on a sharp bear trend since the beginning of the year. The occurrences of this year have been a star contrast from what was witnessed in 2021 when most cryptocurrencies reached new all-time highs.

Joseph Dallago, the co-founder and CEO of the Rain exchange published a LinkedIn post admitting to how this year’s bear market has battered the exchange. In the post, Dallago said last year’s bull market was caused by the excitement surrounding the unique capability of the technology supporting the web 3.0 & crypto sectors.

He also admitted that the current volatility in the crypto market was not adequately planned for, forcing the exchange to make the changes it has made today. He said 2022 was a time of self-reflection and an opportunity for the crypto industry to focus on the sector’s fundamentals and ensure crypto was a legitimate financial ecosystem.

He added that the exchange had let go of “talented team members” that have been behind building the company to the position that it is today. In the LinkedIn post, he also showed a willingness to help these laid-off employees find new opportunities.

Dallago’s LinkedIn post ended by saying Rain would work to get over the effects caused by the bear market and that it would emerge more robust than ever before. However, the events that have faced the exchange mirror what has happened in the crypto industry during the past few months.

Crypto exchanges are laying off employees & halting services

The global cryptocurrency market has witnessed a significant loss in value during the past year. In October last year, the global crypto market reached a record high of above $3 trillion. However, the market has lost two-thirds of this value this year, and the situation has shaken several companies.

Coinbase, one of the largest cryptocurrency exchanges globally by trading volumes, was among the companies that announced they would be letting go of employees in May this year. Other exchanges, including Crypto.com and Huobi, also announced that they would let go of some employees.

Besides laying off employees, some exchanges have also announced plans to halt withdrawals as liquidity drained from their platforms. One of the first exchanges that announced plans to halt withdrawals is the Celsius crypto lending platform. Celsius was one of the best DeFi exchanges before halting withdrawals in May.

The Celsius exchange halted withdrawals in May and has since filed for bankruptcy. The failure of Celsius caused a ripple effect across the market, and in consecutive weeks, several crypto firms such as Zipmex, Vauld, and others also announced plans to halt withdrawals.

Some crypto firms have also filed for bankruptcy because of the bear market that has engulfed the sector. These firms include Three Arrows Capital, Voyager Digital, and Celsius. The bankruptcy filing of the two companies has increased regulatory scrutiny over the cryptocurrency market and the safety of user funds on these platforms.

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