Google reported that the downturn in the digital asset market is negatively affecting financial and cryptocurrency companies’ advertising spending, which has fallen to a 10-year low.
Philipp Schindler, director of business development at Google, said that in the third quarter, insurance, credit, mortgage and cryptocurrency companies significantly reduced the cost of advertising their products. With an overall increase in ads of 6%, this three-month period was the weakest for Google compared to other quarters in 2013, except for the start of the COVID-19 pandemic.
Google CEO Sundar Pichai believes the ad business is being affected by the challenging macroeconomic environment. Not everything is going smoothly on the cryptocurrency market – this year, Bitcoin and Ethereum have lost almost 60% of their historical highs. This has led to a series of bankruptcies for hedge funds and cryptocurrency lenders, including Celsius Network, Voyager Digital and Three Arrows Capital.
Waves of layoffs followed. According to media reports, Indian exchange WazirX laid off 40% of its staff to stabilize its work during the economic downturn, the Crypto.com marketplace laid off almost half of its employees, and the Gemini exchange has already laid off twice.
Amid the crisis, Coinbase, one of the largest cryptocurrency exchanges, laid off more than 1,000 people, and its shares fell by 70%. This year, tech giant Google announced a partnership with Coinbase to allow users to pay for cloud services with crypto assets. This speaks to Google’s hopes that the end of the crypto winter will not be long in coming.
Source: Bits
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