The crypto currency market has experienced a huge crash this year that was triggered by changes in macroeconomic conditions across the world. This crypto winter caused the market to lose billions of dollars, as investors become risk-averse.

According to data from Coin marketcap, the market’s value has been cut in half, moving from around $2.2 trillion on January 1 to roughly $900 billion at the moment.
In this environment of decentralized exchanges, centralized exchanges are struggling as at the mainstream adoption of crypto. These centralized exchanges needs to rethink their strategy if they want to improve their top-line performance.

Digital asset exchanges collect revenue from transaction fees, with the revenue being determined by factors such as the value of digital assets on the exchange and what type of fee schedule is utilized. If a digital asset’s value increases, percentage-based fees bring in more revenue for the company.

Higher trading volumes mean that fees are earned more often, increasing revenues.
With above fact in mind, if the value of crypto currency has declined by more than 50% in 6 months, it’s safe to say that many exchanges will have a difficult time managing their finances.

The question is, which company will be able to survive the downturn? Who will go under?
Recently, we have seen some layoffs in the crypto industry. Companies are now letting go some of their workforce in this sector, for example:

Coin base – 1,000+ employees.
Crypto.com – 250+ employees.
Gemini – 100+ employees.
BlockFi – 150+ employees.

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