The second biggest stablecoin issuer of the crypto market slashed employees’ strength and decided to hire other talents to focus in some other areas.
Circle is the backend firm behind the USDC stablecoin. USDC is the second-ranked top-regulated stablecoin in the crypto market. Since Feb of this year, USDC stablecoin is continuously losing its dominance and Tether (USDT) is grabbing more & more dominance every day.
On 12 July 2023, Coindesk media reported that Circle reduced a small % of its staff, so that the company can maintain the balance sheet strongly.
In an email, Circle informed the Coindesk media that it will now shut down its non-core business and now will hire some other talents to focus on the core business areas.
Some media reports noted that Circle is probably trying to bring diversification in its business model, to sustain its stablecoin business more confidently.
Chinese crypto blogger Colin Wu reported that Dapper Labs also reduced 51 employees, including some full-time employees.
Dapper lab CEO Rohm confirmed the layoff news via his Twitter handle. Rohm also invited other Web3 focussed companies to hire the slashed employees, as they are highly talented.
Crypto 2022 & Lesson for Crypto Companies
In 2022, Huge numbers of crypto companies collapsed badly. The whole game started with Terra’s (Luna) empire downfall. In the same year, almost all the crypto lending platforms collapsed & filed for bankruptcy.
All the bad incidents taught a lesson to the crypto firms that every business needs to maintain diversification in their business model, otherwise, they will fail to maintain their financial position.
USDC rival USDT issuer Tether also expanded its business model to Bitcoin mining & Bitcoin investment plans this year. The industry’s top crypto exchange Binance also has investments in huge numbers of businesses (crypto & non-crypto). Recently Binance invested $15 million in a Web3 gaming project Xterio.