- Binance.US has cut one-third of its staff, with company president Brian Shroder featuring among the exit lot.
- It comes barely weeks after its parent company, Binance.com, shed its high-profile executives.
- Despite broader market gloom, the retrenchment come as the exchange continues to face regulatory attack.
Binance.US, the subsidiary of Binance.com in the US, has laid off a significant number of its personnel, only weeks after the parent company also lost its high-ranking officers to layoffs and resignations.
Also Read: BNB open interest nears $400 million as bulls step in
Binance.US loses top official among 30% staff cuts
Binance.US has lost its president, Brian Shroder, who resigned alongside over 100 staff who have been retrenched, making up one-third of the company’s employee base, according to a Bloomberg report. In his place, the company’s Chief Legal Officer (CLO), Norman Reed, has stepped in on a provisional basis.
[ ZOOMER ]https://t.co/AjIQ3kPdpj CEO RESIGNS: BBG
— zoomer (@zoomerfied) September 12, 2023
Shroder exits the trading platform after two years of service, having joined in September 2021. Alongside his exit, 30% of the staff will also be leaving the company, according a person close to the mater, who cited “declining business and broader market uncertainties.”
Notably, this marks the second series of layoffs this year, with the platform also bending to regulatory pressure by scaling back some of its operations.
Binance.US declining business provokes employee layoffs
The Binance ecosystem continues to navigate regulatory woes, with the US Securities and Exchange Commission (SEC), Commodities Futures and Trading Commission (CFTC), and the Department of Justice (DOJ) all on its case.
In the aftermath of the regulatory pressure, the exchange was compelled to cut down in its operations. For instance, its customers can no longer buy crypto on the platform using US Dollars (USD). Considering this accounted for a huge chunk of their business, the company has recorded a significant drop in its monthly volumes, with The Block’s data dashboard showing a stark drop of almost $9 billion, moving from the $10.58 billion recorded in January 2023 to around $70 million as of September the same year. This represents almost 99.33 % change.
Monthly exchange volume for crypto exchanges
Besides Binance.US, the parent company, Binance.com, also recorded headlining retrenchments only recently, with the majority comprising its top officials. Over the past nine months, the exchange has lost ten key executives from different departments, including its executive vice president, Helen Hai on September 6.
Binance CEO Changpeng Zhao (CZ) attempted to quell down the exits, noting that every firm has restructuring phases. He also assured its user base that the “Binance balance sheet and employee retention remain robust despite the recent market uncertainty.”
Saw some debates in the community. When you do the right thing, and there is FUD, you don't have to do anything. The community defends you.
— CZ Binance (@cz_binance) September 7, 2023
Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, closing of fiat channels, product wind downs,…
According to CZ, the exits are often part of restructuring, and create growth opportunities for its remaining personnel. With some growing into bigger roles outside the exchange and others venturing out, CZ acknowledged having made introductions and references for many of them as part of the support and need to create more growth opportunities within its ecosystem.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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