Binance.US, the American subsidiary of the world’s largest cryptocurrency exchange, is unconcerned by the market instability that has caused some of its competitors to tighten their purse strings. According to an internal Slack message, CEO Brian Shroder informed staff yesterday that the firm is “in the best possible position to not just effectively weather this slump but also emerge as the dominant crypto platform in the United States. “The exchange is “expanding faster than ever and hiring across 80+ roles,” according to Shroder, who also expects the exchange’s product/tech team to treble this year.
Binance.US secured more than $200 million in its initial round of external investment in April of this year, just as the markets were about to crash. RRE Ventures, Foundation Capital, Original Capital, VanEck, and Circle Ventures were among the investors in the round, which valued the firm at $4.5 billion at the time.
While Binance.US claims it is neither a subsidiary nor associate of Binance, it was founded as a legally separate corporation in 2019 and is linked to Binance through its creator, Changpeng Zhao, as well as licence agreements covering fundamental technology and branding rights.
Shroder also asked staff to “ignore the noise and short-term volatility” of the cryptocurrency market in his message, highlighting the company’s recent staking platform launch and “many more exciting announcements and projects in the works.”
Cryptocurrency values have been dropping, with Bitcoin and Ethereum down more than 50% since the beginning of April, and big exchanges have been hit hard, owing to their reliance on trading volumes for income. Coinbase, a publicly listed company, stated today that it will lay off 18 per cent of its worldwide personnel, while Gemini, the crypto platform co-founded by Cameron and Tyler Winklevoss, cut 10% of its workforce earlier this month. Both companies cited the current slump, or “crypto winter,” as it is been dubbed by many, as the motivating force behind their decision to eliminate employees, which contrasts with Coinbase’s ambitions to grow its headcount just a few months ago.
So far, FTX, the second-largest cryptocurrency exchange after Binance, appears to have weathered the storm quite well. Last month, the company, which was valued at $32 billion in January, moved into stocks trading in an attempt to diversify its operations and is considering acquisitions amid the slump. Sam Bankman-Fried, the company’s founder and CEO, came to Twitter today to comment on the larger crypto hiring freeze, claiming that he had repeatedly refused to employ more aggressively despite pressure from FTX’s venture funders.
“You can not replace ‘increasing revenue’ with ‘rising costs’ when it comes to hypergrowth,” Bankman-Fried commented in the Twitter conversation. He stated that FTX now has 300 people and expects to expand staff “sustainably” by 50% year over year.