Chainalysis, a blockchain analytics platform, conducted a study that found that between July 2021 and June 2022, 9.2% of all global digital currency transactions occurred in MENA countries. Nonetheless, blockchain businesses in the Middle East have been hit hard by the recent bear market, causing a new trend of blockchain companies with layoffs globally. The crypto industry as a whole has been impacted hard by the ongoing round of layoffs, with even the largest companies being forced to scale back their expansion plans. A number of crypto firms have reduced headcounts as they fight to stay afloat. Approximately 26,702 crypto-related employment has been lost as of December 9, 2022, according to news accounts and official statements. Here is what we know about salary reductions and job losses.
Blockchain Companies with layoffs In The Middle East
Rain Financial
Coinbase-backed Rain Financial, a prominent Bahrain-based cryptocurrency exchange, has laid off hundreds of employees, Bloomberg reports, citing persons with firsthand knowledge of the matter. Bloomberg reports that the layoffs were implemented as a result of a prolonged decline in the prices of cryptocurrencies and foreign markets. According to Crunchbase, Rain has between 251 and 500 employees, whereas LinkedIn places the figure between 501 and 1,000. In January, Rain Financial raised $6 million in a round of financing led by Middle Eastern venture capital firm MEVP Capital, with participation from Coinbase. The Central Bank of Bahrain granted it a license as the first cryptocurrency exchange to offer services related to digital assets.
BitOasis
BitOasis, a cryptocurrency exchange with a focus on the Middle East based in the United Arab Emirates, announced the layoff of nine employees on Sunday, making it the latest company in the sector to reduce employment in response to the industry slump and market volatility. According to a firm representative, this equates to about 5% of employees. Having started operations in 2015, BitOasis is headquartered in Dubai and caters to both English and Arabic speakers in the Gulf region. BitOasis is a Virtual Asset Service Provider approved by the Financial Intelligence Unit of the UAE Central Bank and the Abu Dhabi Global Market to operate a Multilateral Trading Facility in 2021. In March of 2022, BitOasis was given conditional approval by Dubai’s Virtual Assets Regulatory Authority (VARA).
Takeaways
Coinciding with the decline in cryptocurrency prices has been a widespread sell-off in public markets as investors flee from high-flying technology and growth companies on the back of fears that interest rate hikes to combat inflation will hurt their investment returns. In addition, crypto exchanges that may have relied on retail traders while there was abundant liquidity in the system have experienced severe slowdowns in trading. Therefore, cryptocurrency exchanges have been fast to lay off workers in the current economic climate. As 2023 slowly kicks off, it is a wonder if blockchain companies with layoffs would revert to pre-202 employment numbers.
