Over 80% of Investors Agree Layoffs Help Crypto Firms Be More Effective
A majority of investors believe that most crypto firms are overstaffing over the past year and that downsize could be a boost for these firms to be more effective in services they’re engaged, a survey by polling firm Insight Chain found.
The survey conducted Nov 26 asked 473 investors about their views upon the heatedly discussed Bitmain layoffs. According to the result, 82.7 percent of respondents agree that the current crypto firms have the common issue of redundancy; they believe job cuts could help these companies be more effective.
That being said, 66.6 percent of those polled worry that the layoff of big companies like Bitmain would trigger another round of panic sentiment in the market that has already been vulnerable.
The massive ongoing layoffs in the crypto industry have intensified the bitcoin winter. The wave of startups that emerged over the past year to get on the crypto bandwagon has started to feel the pinch and downsize, some even dying.
Big names in the industry are also affected. Amid the price slump of the crypto market, crypto mining giant Bitmain’s layoff has hit the headlines of crypto media these days. The massive coverage surfaced just days after Ethereum network startup incubator ConsenSys was reported to let go of around 50-60 percent of its staff, and Steemit announced to lay off 70% of employees; while the spell keeps going, major crypto exchange Huobi has also reportedly planned to lay off up to 50% of staff yesterday.
In face of these massive layoffs, the survey suggests that most investors have been rational and offered constructive advice. 77.6 percent of investors advise that a crypto qualification exam should be set to ensure the professional threshold of crypto practitioners, agreeing with the practice of crypto exchange Huobi in its layoff.
The rapid expansion of crypto firms over the past year along with the spike of bitcoin price has indeed led to the bloat of some firms, knock-out system also fits in the crypto sector; while on the hand, professional talents are still in need for these companies. It is inspiring that the majority of investors hold rational views towards it, with 61.5 percent are still bullish on the future of crypto industry despite the current tough time.