Smaller crypto exchanges could be vulnerable to collapse during this crypto bear market, given seemingly unsustainable yields offered to users, and a confusing “webs of relationships” between companies in the space, a new report from the crypto data provider Kaiko has found.
According to Kaiko, exchanges are currently under stress for several reasons, including the decline in trading volumes that always comes during crypto bear markets.
As an example of the financial stress even larger exchanges are under because of this, Kaiko pointed to Coinbase, which has said it is laying off 18% of its workforce, and Bybit which is cutting its workforce by 30%.
On the other hand, some exchanges are also using the current market downturn to add more people to their teams and be better prepared for the next bull market. Among these are Binance, which said it is hiring for 2,000 positions, and Kraken, which is looking to add 500 people.
The warning from Kaiko followed news from earlier this week...
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