Crypto exchange Gate.io could be undergoing severe financial headwinds due to the ongoing bear market.

According to the team at WuBlockchain, the crypto exchange has reportedly started massive employee layoffs. The exact number of affected employees is unknown, but ‘employees said that it is rumoured to be 40% to 50%’ of its current workforce. In addition, some of Gate’s employees have seen their permissions withdrawn from the company’s systems.

Wu Blockchain on Twitter: "The cryptocurrency exchange Gate started layoffs. The proportion is unknown. Employees said that it is rumored to be 40% to 50%, and the compensation is N+1. Some employees have already begun to withdraw their permissions. Gate responded as "normal optimization". Exclusive / Twitter"

The cryptocurrency exchange Gate started layoffs. The proportion is unknown. Employees said that it is rumored to be 40% to 50%, and the compensation is N+1. Some employees have already begun to withdraw their permissions. Gate responded as "normal optimization". Exclusive

Justin Sun Had Earlier Confirmed Lay-Offs at Huobi

Earlier today, Tron’s Justin Sun confirmed speculation that his recently acquired Huobi exchange was planning on downsizing its staff by 20%. This is after the team at WuBlockchain tweeted on January 4th that Huobi was planning on cancelling year-end bonuses and preparing its staff for job cuts.

Therefore, it is highly likely that Gate’s layoffs are true.

Gate Token (GT) Drops by 2.5%

Concerning the effects of potential layoffs on the price of Gate Token, the 15-minute chart below shows that GT/USDT opened the day around the $3.20 price area and experienced a local low of $3.1198. This is a minor 2.5% drop despite the prospects of the exchange laying off some of its employees. The token has since experienced a short-term bounce to its current price of $3.1529.

GT/USDT Could Fall Below $3 if the Layoffs are Confirmed

Zooming out to the one-day GT/USDT chart below, the token remains in bearish territory below the 50-day (red), 100-day (yellow) and 200-day (green) moving averages.

Gate token has also had two consecutive days of selling activity. Its daily MFI (green), MACD and RSI (red) are yet to exhibit buyers’ interest. Therefore, it is probable that GT/USDT could retest its December 30th low of $2.9167 and even dip lower if the news of employee job cuts is confirmed.

(By John P. Njui)