dYdX Announces Layoffs a Day After Consensys Sent Home 20% of Its Employees
dYdX Says Goodbye to 35% of its Staff
Well-known decentralized crypto exchange dYdX has cut its workforce by 35%, as CEO Antonio Juliano hints at the need to restrategize. Juliano, who rejoined the company on October 10th after quitting earlier this year, tweeted on Wednesday morning that the decision to relieve some employees of their duties was arrived at following a realization that dYdX could no longer sustain its massive payroll.
The CEO revealed that the decentralized exchange has had a tough year despite the crypto markets trending upward for the better part of 2024. He claims that increased competition has lowered the company’s revenue, making it difficult to raise money to pay all employees.
While appreciating the affected employees for their services, Juliano asked companies needing talented individuals to reach out.
About dYdX
dYdX runs on its own layer-1 blockchain, dYdX Chain, which was built using Cosmos SDK. The decentralized exchange employs the Tendermint proof-of-stake consensus mechanism to verify transactions.
What separates dYdX from competitors is its futures trading offering. While most decentralized exchanges do not support leveraged trading, dYdX allows traders to open trades with leverage of up to 25x.
After Juliano left his CEO role in May, the exchange experienced several challenges. For example, dYdX’s domain got compromised in July, and the attacker drained all connected crypto wallets.
Consensys Announces Layoffs
The latest layoffs at dYdX come a day after Ethereum software firm Consensys announced sending home 163 employees (20% of its workforce). The company said on Monday that the affected individuals would get severance packages.
Like dYdX, Consensys claimed it couldn’t raise sufficient revenue to keep all employees. On his X account, the company’s CEO Joseph Lubin said Ethereum’s stagnant price performance is the major reason fueling a drop in earnings. While Bitcoin has set a new all-time high this year, Ethereum, on the other hand, is down 33% since March, trading at around $2,604 as of this writing.
Lubin attributed Ethereum’s poor performance to the growing adoption of faster and cheaper networks like Solana and Tron.
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