Binance has reportedly laid off more than 1,000 employees in recent weeks as the cryptocurrency exchange faces regulatory challenges and an investigation by the U.S. Department of Justice.
On July 14, The Wall Street Journal reported that the exchange led by Changpeng Zhao could lose more than a third of its employees as layoffs continue. Sources said that service workers, especially those in India, were the first to be hit by the layoffs. Bitcoin fell in response, almost falling below the $30,000 mark.
CZ referred to the reported layoff data as "FUD" - fear, uncertainty and doubt.
While many exchanges have struggled in the wake of the crypto winter, Binance’s challenges multiplied after the SEC filed 13 charges against it in early June. Since then, the company has faced regulatory hurdles in major European markets.
On May 31, Binance said it would cut 20% of its staff, but called the measures resource allocation rather than layoffs. A Binance spokesperson said Binance is preparing for the "next major bull cycle" and adjusting resources accordingly.
Let's take a closer look at this news:
First of all, the timing of the news was very delicate, as Bitcoin broke through and closed above the resistance level of $31,000. However, judging from the data, there is very little room for short-term gains, and the bulls have not yet gained a firm foothold. Releasing the news at this time to dump the market is undoubtedly the most advantageous choice. After all, Bitcoin’s 20-day exponential moving average (EMA) is at $30,244, which is a full 1,600 points away from the high point.
Secondly, Ripple Labs' victory in the lawsuit against the U.S. Securities and Exchange Commission has given a major boost to the crypto industry. In addition to benefiting Ripple and XRP, analysts believe that the ruling will weaken the regulator's lawsuit against Binance and Coinbase. The possibility of Wall Street's restraint on the crypto industry is gradually becoming smaller.
Another significant event was that the U.S. Dollar Index (DXY) completed a bearish head and shoulders pattern on July 12 and subsequently fell below the psychological level of 100 on July 13. The U.S. Dollar Index (DXY) is negatively correlated with Bitcoin; hence, its weakness is a positive sign for the cryptocurrency bulls.
Let me ask you, when policies are favorable, the economic environment is improving, and the living space is getting bigger, as the world's largest exchange, would you choose to lay off one-third of your employees and cut off your own arm?
Look at the publisher of the news, the Wall Street Journal, oh, that's fine.
When it comes to spreading rumors, the Wall Street Journal is a repeat offender. Not long ago, it spread an international rumor that "China proposed that Russia own part of Ukrainian territory." Because it was so outrageous, Ukrainian Foreign Minister Kuleba immediately refuted the rumor. There are many such examples.
However, instead of taking responsibility or paying a price for any of its slanderous rumours, the Wall Street Journal thrived in the US media and went further and further down the road of spreading rumors. It is hard to believe that there was no official connivance, encouragement and feeding in this.
People also wondered if one was playing the good cop and the other the bad cop. Rumors have in fact become a handy tool and weapon for the authorities to curb and suppress the crypto industry, and they are very cheap.
However, it must be said that the timing and the content of the news are indeed very professional. It is possible that there are Bitcoin whales who are trying to manipulate the market by dumping public opinion. The encryption industry is still a brand new industry, and many of us still lack the most basic ability to distinguish, which requires time and accumulation of professional knowledge. Talk less and read more. Don't just believe in the news on paper. Look at the data more, and you will have a new understanding of the encryption world.
