Binance CEO CZ Admits Laying Off Employees
The Wall Street Journal first reported that the largest crypto exchange Binance laid off more than 1000 employees recently. Binance CEO Changpeng Zhao, CZ admitted that. He stated that they had to take this decision and it is referred to as involuntary termination.
But Binance CEO did not agree with the number of laid-off employees reported there. Binance is still hiring in order to enhance talent density, he added. There is FUD around Binance and that usually comes from traditional media outlets.
Many companies lay off their employees sometimes. Especially due to unfavorable market conditions, we saw this happening. But it is also true that Binance has to deal with challenging situations. It reaches to an extent they cannot avoid it in any way.
The SEC filed lawsuits against Binance and its CEO CZ. Binance takes preparation to deal with costly and lengthy legal battles. Unfortunately, this exchange is going through regulatory security in other countries as well. Handling this unfavorable situation is not going to be easy and no one can predict the results.
This exchange has to deal with everything and keep running its business. Maybe they think it is better to lay off some employees and be prepared to face challenging situations. Ripple's partial win shows XRP is not a security and that is a good sign.
Regulators often point out some cryptos as security and play their cards to take legal action. They state that crypto exchanges have to register in a proper way. Without giving clear guidelines, they are more interested in charging a fine or filing a lawsuit against crypto exchanges.
The SEC stated XRP is an unregistered security which is not a security now. They claimed 68 cryptos as securities so far. Now after Ripple's partial win, it will be more difficult to prove those cryptos are securities. Several allegations were brought against Binance and CZ. No company likes to put its business at risk.
Probably the centralized authority goes after bigger exchanges to scare other crypto businesses. Binance is successful in its business as a crypto exchange. They faced challenging situations before and hope they will handle this unfavorable situation successfully.
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Reference: 1.
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Binance decision at this point isn't a new development in the labor market. The job insecurity factor stands inseparable with employees and their employers but then I believe the company acted upon a rational stance to have laid her workers off involuntarily.
Folks should also give in their best to create profitable medium for them selves against such heart breaking and impromptu dismissals which has the capacity of relegating per Capita incomes.
This' quite a detailed publication.
The company has to take tough decisions sometimes because of unfavorable circumstances. Hope Binance will successfully handle the situation and move forward.
Nobody will really know but the bull market caused a lot of the companies to add a lot more employees. From then, it just shows that the companies will cut off employees when the cash gets rough. If they can't make enough money and they are losing money, it is just the natural thing for them to do.
Yes, many companies hired many employees in the bull market. It is as if the bull market will always be there. Like some people quit their jobs in the bull market and realize how hard it is to make money from crypto in a bear market.