[HN Gopher] Binance lays off over 1k Employees
       ___________________________________________________________________
        
       Binance lays off over 1k Employees
        
       Author : jason_zig
       Score  : 181 points
       Date   : 2023-07-14 17:06 UTC (5 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | resolutebat wrote:
       | > _As we prepare for the next major bull cycle, it has become
       | clear that we need to focus on talent density across the
       | organization to ensure we remain nimble and dynamic. This is not
       | a case of rightsizing, but rather, re-evaluating whether we have
       | the right talent and expertise in critical roles._
       | 
       | This is some next level PR "major bull" right here. Not only are
       | they claiming with a straight face that these are not layoffs,
       | but they're saying it's happening because crypto is about to
       | rocket to the moon! (As opposed to, say, Binance being currently
       | raked over the coals by every financial regulator on the planet.)
        
       | benreesman wrote:
       | I haven't paid any serious attention to crypto-type markets in a
       | while but historically BTC/USDT was a pretty good number to look
       | at if you could only look at one and it's (glances)...whoa back
       | above 30k? That's not like peak tulip or even close but
       | historically like, high-ish I think. I don't particularly feel
       | like reading the entrails of the crypto chicken at the moment so
       | I'm going to assume that the crypto market (including the
       | perpetual futures and stuff where Binance makes the big bucks)
       | isn't lying in ruins. I'm sure someone will let me know if that's
       | way off.
       | 
       | 8 thousand people is not a lot for a company doing trillions of
       | dollars of transactions in dozens of countries most which have at
       | least some regulation. That would be a lot if they were all
       | engineers and quants, but even there, an electronic stock market
       | is a tricky little devil to build and operate.
       | 
       | So is this a bad outlook for crypto, a serious setback in the
       | various regulatory battles, or just another brick in the wall of
       | what is increasing looking like Don't Poach Gate 2.0? (Sorry Bond
       | Villains, the kids were going to hear about that eventually.)
        
         | acaloiar wrote:
         | Everything you need to know about crypto today can be found at
         | https://web3isgoinggreat.com/
        
           | tim333 wrote:
           | That site focuses on the bad stuff but crypto goes on. Maybe
           | check https://99bitcoins.com/bitcoin-obituaries/ for balance.
        
           | vorticalbox wrote:
           | > and is definitely not an enormous grift that's pouring
           | lighter fluid on our already smoldering planet.
           | 
           | This is actually a worry i have about in regards to crypto,
           | the BTC network uses a staggering amount of power.
           | 
           | Ai is next of my power hungry worry list.
        
             | rvz wrote:
             | > This is actually a worry i have about in regards to
             | crypto, the BTC network uses a staggering amount of power.
             | 
             | Crypto has alternative consensus methods available today
             | and a former PoW blockchain (Ethereum) was able to cut
             | their emissions by 99.9% by moving to a efficient
             | alternative with Proof-of-Stake. For crypto it is possible.
             | 
             | AI (Deep Learning) on the other hand has no efficient
             | alternative methods available for training, fine-tuning and
             | inference and continues to waste tons of water and consume
             | more resources.
             | 
             | > Ai is next of my power hungry worry list
             | 
             | It should be the main concern. The top of your list even,
             | hence the aforementioned points today. Deep Learning has no
             | efficient solutions to its energy problem which remains to
             | this day after decades of its existence.
        
             | nkuttler wrote:
             | > the BTC network uses a staggering amount of power
             | 
             | Actually, bitcoin uses a ridiculously small amount of power
             | for what it provides. See for example here
             | https://www.lynalden.com/bitcoin-energy/ for an
             | introduction to clear up this misconception.
        
               | plopilop wrote:
               | If you really believe that something that is 1 million
               | times less efficient than Visa/MasterCard for a fraction
               | of the service, and that miners really use residential
               | energy when they are active 24/7 and thus by definition a
               | continuous strain on the grid, I have so many scams^W
               | interesting products to sell you
               | 
               | https://digiconomist.net/bitcoin-energy-consumption
        
               | nkuttler wrote:
               | [flagged]
        
               | RestlessMind wrote:
               | Comparing Bitcoin network to Visa/MasterCard is as
               | pointless as comparing Gold mining to those cc networks.
               | Fair comparison would be Bitcoin network vs Gold
               | mining/storage/securing/transfer activities.
        
               | plopilop wrote:
               | The convertibility between money and gold has stopped in
               | the 70s.
               | 
               | Bitcoin allows for instant money transfer, and so does
               | Visa.
               | 
               | The fact that bitcoin has no collateral is a whole other
               | topic.
        
               | the_gastropod wrote:
               | This article is basically like arguing: "Sure, using the
               | Infant-Chipper 9000 results in the deaths of infants. But
               | it's a rounding error if you consider how many infants
               | die in the world every year!"
               | 
               | Bitcoin purposefully wastes lots of energy to provide
               | something of extremely dubious value.
        
               | willcipriano wrote:
               | It's literally an infant chipper insofar as it enables
               | the sale of (and thus the production of) CSAM.
        
               | ardme wrote:
               | Yet obviously, some people find it useful. Who are you to
               | tell people how to live their lives?
               | 
               | Maybe you should stop flying on airplanes for the rest of
               | your life?
        
               | ChainOfFools wrote:
               | When how people live their lives depends on them
               | shoveling millions of joules s of externalities onto my
               | environment and that of my kids, in addition to propping
               | up a rube goldberg Ponzi scheme that has a non-zero
               | chance of ensnaring people I care about either directly
               | or indirectly through financial mismanagement, you better
               | believe I'm going to tell you how to live your life.
               | 
               | I'll tell lots of other people how you live your life is
               | hypocritically contributing to a massive increase of
               | financial leverage on the part of "rationally self
               | interested" sociopaths and criminals at everyone else's
               | expense( in direct opposition to its putative purpose of
               | undermining predatory central bankers, yet is simply
               | shifting the power to predatory anon-ish ransomware
               | purveyors and sex traffickers and bullshit gambling token
               | insta-twit "influencers" seeking to exploit the naivety
               | of children for their own financial gain), and generally
               | promoting the enshittification of everything that touches
               | the internet, and should be mocked and discouraged at
               | every opportunity.
               | 
               | You don't like the free market of ideas when it turns
               | against you? tough.
        
               | crtified wrote:
               | "When how people live their lives depends on them
               | shoveling millions of joules s of externalities onto my
               | environment and that of my kids, in addition to propping
               | up a rube goldberg Ponzi scheme that has a non-zero
               | chance of ensnaring people I care about either directly
               | or indirectly through financial mismanagement, you better
               | believe I'm going to tell you how to live your life."
               | 
               | This is no defense of Bitcoin/crypto, but the above
               | paragraph relatively concisely describes how I feel as
               | part of the underclasses in the traditional world. Except
               | that all the fears it encapsulates have already occurred
               | for my family, generations back.
               | 
               | There are people in this thread who get a yearly payrise
               | (which translates to increased selfish expenditure on
               | plastic toys and air flights and fancy petrol burning
               | machines) that's greater than my entire household's
               | income, and I'm just an ordinary person in a western
               | country. How many household bitcoin miners does that
               | equal, environmentally speaking? For that one person?
               | 
               | The hypocrisy embedded in fervent hatred of crypto, as
               | though extravagant & hugely unbalanced wastage of
               | resources wasn't practiced by us all daily, implies a
               | moral distance that, imo, barely exists. Bitcoin and
               | crypto are mere reflections of the wastage that we as a
               | species have normalised, and still do, via our
               | lifestyles.
               | 
               | It's "industry" and "business" that have fucked this
               | world.
        
               | ChainOfFools wrote:
               | I'm not advocating for the "industry" side as if it's a
               | dichotomic industry against crypto, or banking against
               | bitcoin. I'm specifically criticizing crypto and
               | especially Bitcoin because the entire ideological mission
               | of the project is to disrupt and disintermediate all of
               | these well-known predatory Industries, when it has done
               | none of this whatsoever. In fact has actually contributed
               | both to incumbent disproportionate inequality of wealth,
               | as well as creating new classes of disproportionate and
               | malignant wealth. It is backfired in the worst possible
               | way and all the fallout is on the people that was
               | supposed to benefit.
               | 
               | And the and the relative handful of people at the center
               | of the so-called decentralized crypto world are well
               | aware of this and don't give a flying f**.
        
               | red-iron-pine wrote:
               | The people finding it useful are overwhelmingly moving
               | money illegally, such as how you can peg BTC shifts to
               | Xi's anti-corruption crackdowns in China, or MBS in
               | Saudi. Or moving drugs. Or hyping something to sell more
               | made up money to rubes.
        
               | the_gastropod wrote:
               | "Some people find the infant-chipper useful. Who are you
               | to tell people how to live their lives?"
               | 
               | <insert improve the world somewhat meme here>
        
               | manuelabeledo wrote:
               | What exactly does it provide?
               | 
               | So far it seems that Bitcoin mainstream use is to create
               | speculative markets. Any other intended objective is a
               | drop in the bucket.
        
               | nkuttler wrote:
               | If your country's money and banking works for you I don't
               | think I can explain to you why bitcoin is useful, you
               | simply have no use for it. That your peers primarily use
               | it for speculation says more about them than about
               | bitcoin.
        
               | patmcc wrote:
               | Give me a ballpark for the relative market share of
               | "bitcoin as speculation" vs "bitcoin as currency".
               | 
               | I'd estimate it as...oh...98% speculation, and I think
               | I'm being generous.
        
               | RestlessMind wrote:
               | What is your estimate about Gold? I say Bitcoin and Gold
               | serve roughly the same purpose.
        
               | patmcc wrote:
               | Looks like gold mined gets diverted to:
               | 
               | 47% investment and central1 banks
               | 
               | 45% jewellery
               | 
               | 7% tech/industrial applications
               | 
               | See https://www.statista.com/statistics/299609/gold-
               | demand-by-in... and https://natural-
               | resources.canada.ca/our-natural-resources/mi... - don't
               | exactly agree, but close.
               | 
               | (and, importantly, it doesn't require terawatt-hours to
               | maintain gold once you've mined it).
        
               | manuelabeledo wrote:
               | I would like to hear more about those use cases.
               | 
               | Because I cannot fathom a system where either currency or
               | banking does not _work_ , and the preferable alternative
               | is to rely on a highly volatile asset that requires vast
               | amounts of energy and time to work.
               | 
               | > That your peers primarily use it for speculation says
               | more about them than about bitcoin.
               | 
               | We are not in 2011 anymore. Bitcoin did not become a
               | widespread vehicle for commercial transactions. Countries
               | with defenestrated economies did not find an alternative
               | in Bitcoin. Instead, we have whales, among them large
               | banks and corporations, controlling over a third of the
               | market, and most transactions are made in exchanges with
               | arbitrage or speculation purposes.
               | 
               | Suffice to say, I don't consider JPMorgan or Goldman
               | Sachs my "peers".
        
               | RestlessMind wrote:
               | > I would like to hear more about those use cases.
               | 
               | Here you go, I have compiled some examples for you:
               | https://news.ycombinator.com/item?id=32406095
               | 
               | > Because I cannot fathom a system where either currency
               | or banking does not work, and the preferable alternative
               | is to rely on a highly volatile asset that requires vast
               | amounts of energy and time to work.
               | 
               | May I ask you where you were born and raised? A lot of
               | people do actually have to face shitty systems where
               | Bitcoin is a godsend.
        
               | acaloiar wrote:
               | When that list reaches the length of
               | https://web3isgoinggreat.com/web1, a great point will
               | have been made.
        
               | nkuttler wrote:
               | Bitcoin has absolutely nothing to do with web3, so you
               | provided an empty list.
        
               | manuelabeledo wrote:
               | > Here you go, I have compiled some examples for you:
               | https://news.ycombinator.com/item?id=32406095
               | 
               | Isn't it a bit disingenuous to think that _common people_
               | have moved $50bn in Bitcoin out of China? Or have moved
               | ~$2.4bn worth of Bitcoin in Nigeria in a single month?
               | 
               | > A lot of people do actually have to face shitty systems
               | where Bitcoin is a godsend.
               | 
               | I would say that a handful of examples, of which some are
               | highly questionable, constitute anecdotal evidence, at
               | best. Some of these scenarios are indistinguishable from
               | using any other stable foreign currency, or even
               | commodities, with the added difficulty of requiring
               | certain technology literacy most people don't have.
               | 
               | > May I ask you where you were born and raised?
               | 
               | I could ask the same, because I haven't found many ardent
               | defenders of cryptocurrency outside the tech circles of
               | the so called developed world.
        
           | trotro wrote:
           | I know this is tongue in cheek, but there's a lot more to
           | crypto than the scams and failed projects exposed on
           | web3isgoinggreat.
           | 
           | One example is all the amazing new research in zero-knowledge
           | proofs, MPC, FHE, and modern cryptography in general, that is
           | motivated and funded by cryptocurrency projects.
        
             | dpflan wrote:
             | How much do these ideas depend upon the concept of
             | blockchain?
        
               | trotro wrote:
               | They don't depend on the blockchain, but the fact is that
               | most recent research on these topics has come from the
               | blockchain/cryptocurrency space.
               | 
               | One interpretation is that crypto companies need security
               | and privacy, while big tech doesn't seem to care all that
               | much.
        
             | ChainOfFools wrote:
             | Yes, I'll acknowledge that there may be a handful of
             | capable researchers who are able to progress on some basic
             | science by accepting free money from a scam industry which
             | is indiscriminately shoveling it at anything that might
             | appear to legitimize itself.
             | 
             | Just as, in days of old, those who wished to do legitimate
             | (and costly) science had frame their research as supporting
             | alchemical beliefs leading to discovery of immortality, or
             | means to make gold from lead.
             | 
             | and astronomers who wished to build an observatory had to
             | go along with some highly flimsy justification about how it
             | could serve as a means to prognosticate the birth of an
             | heir or victory in battle for some petty murderous
             | strongman.
        
         | spamizbad wrote:
         | Just speculating, but I imagine BTC does well because there's
         | way less competition sloshing around in the crypto world these
         | days. The NFT craze is over, 20 ultra-hyped crypto coins aren't
         | being launched every second, there's fewer (illegal) securities
         | floating around. So if you want to be in crypto, but things are
         | scary, and you're looking for something safe? It's Bitcoin.
        
         | JeremyNT wrote:
         | It's bizarre to me too. I think there must be some seriously
         | big holders doing wash trading to prop things up on paper.
         | 
         | Anecdotally, all of the normies I know of who were really "into
         | crypto" during the pandemic are coming around to thinking of
         | the whole thing as a shark pit full of scams. There can't be
         | that much new blood out there left to recruit to the pyramid at
         | this point.
        
         | davidgerard wrote:
         | number is one thing, but volume is through the floor
        
           | automatic6131 wrote:
           | Hi David! I love your blog and your twitter
        
           | MuffinFlavored wrote:
           | How much is it down % wise compared to what period
           | previously?
        
         | tippytippytango wrote:
         | bitcoin and crypto have long since parted ways, they are
         | different things now. even from a regulatory perspective
         | bitcoin is the only one that has clarity being defined as a
         | commodity and not a security, everything else is in a grey area
        
           | meowkit wrote:
           | This isn't accurate.
           | 
           | BTC has the best legal argument for being treated as a
           | commodity, but there has been no legislative decision on
           | this.
           | 
           | The CTFC sees BTC and ETH as commodities. Gensler pre-SEC
           | said BTC, ETC, and LTC are commodities. The SEC and Gensler
           | post-SEC says they are all securities, except maybe BTC.
           | 
           | The Ripple decision (Yesterday) says that unless a crypto is
           | contractually sold to an investor (e.g. not directly listed
           | via an exchange) then its doesn't fall under the Howey test.
           | 
           | https://www.reuters.com/legal/us-judge-says-sec-lawsuit-
           | vs-r...
        
         | [deleted]
        
         | bardak wrote:
         | From my view there is room for sustainable crypto businesses
         | but they get crowed out by the big unsustainable crypto
         | businesses that were entirely relying on huge gains in price.
         | 
         | That being said whatever practical uses there are for crypto is
         | entirely detached from the value of crypto.
        
           | RestlessMind wrote:
           | The biggest practical use for crypto (specifically Bitcoin,
           | as a store of value) is entirely dependent on the value of
           | crypto.
        
         | jasmer wrote:
         | The price of all crypto is managed. All exchanges have a huge %
         | of wash trading to hold up prices, and insiders with giant
         | ownership stakes manipulate markets. All exchanges are either a
         | scam, or 'implicitly colluding' with shady things.
         | 
         | BTC is ironically not a very free market in that sense,
         | moreover, because nobody needs it for anything, it has a buy-
         | hold characteristic.
         | 
         | If people needed BTC for things (which would force some
         | liquidity ops) then we'd see a price that reflected something.
         | 
         | Crypto markets are essentially 'schemes' of one kind or
         | another, they serve no purpose other than to be a hustle.
         | 
         | If people want to play dumb games, that's fine, as long as they
         | are doing it legally and it doesn't rope in a lot of external
         | players.
        
           | MuffinFlavored wrote:
           | > All exchanges have a huge % of wash trading to hold up
           | prices
           | 
           | Even "knowing this" (I mean, none of us have really any proof
           | just at what scale it's happening at and... the same things
           | happens in the S&P500 with high frequency trading
           | algorithms/bots trading back and forth, hedge funds,
           | institutional investors, etc.) I don't feel like I can
           | confidently explain who/how many people really dollar cost
           | average into Bitcoin that can prop it up to $10k, $20k, $30k,
           | etc.
           | 
           | Where/who are the buyers? How many people across the world
           | are actively STILL investing directly into BTC to the point
           | where it's up 80-90% YTD?
        
             | jasmer wrote:
             | Finance is _extremely_ regulated even if there are
             | shenanigans, Crypto is just an excuse to do finance without
             | oversight, which means it 's mostly shady.
             | 
             | Every attempt to peel away the onion layer reveals mass
             | problems.
             | 
             | It's like saying 'we have no hard proof that all this Mafia
             | gangs revenue came from illegal activity!'.
             | 
             | What I'm saying is, the point of crypto is hustle, there is
             | no real economy, and the players are all shady as can be.
             | 
             | Literally nobody knows where the Binance guy even is!
             | 
             | Why would the Binance guy want to hide from global
             | authorities?
             | 
             | Regular bank CEO's don't.
             | 
             | It's mafia-adjacent the whole way down, with a lot of small
             | dupes and kids playing with some amount of money.
             | 
             | There is no 'there there' in the value creating sense that
             | we might want to see.
             | 
             | If you told me BTC was 95% regular people using it for
             | business and 5% shady, I'd say we need to work on that
             | problem. But it's only 5% 'useful' and the rest is just
             | layers of scam and fraud.
             | 
             | We need to dump crypto, and if we want to try that
             | experiment again - because I think there might be value
             | there - we can give it a new name and keep it clean from
             | the start.
        
           | ceejayoz wrote:
           | Precisely this. It's like being pleased about the value of
           | your Madoff holdings. Looks great, on paper, until too many
           | people try to cash out at once.
        
             | pfisch wrote:
             | I mean you could say that about any stock or bank. If
             | everyone tries to cash out it goes to 0.
        
               | rurp wrote:
               | That's not really true, assuming it's a real company/bank
               | with assets and revenue. If the stock is based on
               | something with actual value there will many parties
               | willing to buy the stock even if all of the current
               | shareholders want to sell.
        
               | ksherlock wrote:
               | Behind a stock you've got a company with cash flow and
               | assets. If nothing else you can sell off the office
               | furniture. Crypto is backed by ... a prime number written
               | on a piece of paper (minus the paper)?
        
               | moralestapia wrote:
               | Banks shouldn't ... in principle.
        
               | anonporridge wrote:
               | Fractional reserve banks (which is all modern banks)
               | should in principle.
               | 
               | The whole point of fractional reserve banking is to
               | leverage people's trust in banks to try to generate
               | faster growth and profits.
        
               | hiq wrote:
               | One thing though is that is unlikely that everyone would
               | cash out below a certain price for a stock can be sold
               | for parts. There would be at least some people realizing
               | that they might as well hold, liquidate the company and
               | make a profit out of it. So in practice there's a floor
               | for the stock price (as long as assets > liabilities or
               | similar).
               | 
               | That's not the case of BTC. Its value is completely
               | depends on confidence. At no price can you be sure that
               | you'll make a profit, you can only guess that it'll go
               | back up, so there's no such floor.
        
               | ceejayoz wrote:
               | There's substantial difference between a bank run and a
               | Ponzi collapsing.
        
               | charcircuit wrote:
               | In both cases current assets < current liabilities. Both
               | require getting a loan to pay out the depositors. Both
               | make no sense to loan money to as they will have no way
               | to afford the payments to be worth loaning to over
               | someone else.
        
               | ceejayoz wrote:
               | > In both cases current assets < current liabilities.
               | 
               | That there are _some_ things the same does not make them
               | _the_ same. You and I are both humans, but we are not the
               | same person.
               | 
               | In a Ponzi collapse, _all_ assets are typically  < even
               | current liabilities, let alone all of them. Unlike a bank
               | run involving _temporary_ liquidity issues, a Ponzi is
               | never going to be able to pay everyone out.
        
               | charcircuit wrote:
               | To the customer it's the same. People don't want to be
               | told that they will get their funds in a few years, they
               | want it now. Liquidating all your assets is going to
               | reduce the total value of all of your assets to
               | potentially below your liabilities. If it doesn't good
               | job, that means the bank is safe against bank runs, but
               | if not they aren't.
        
               | ceejayoz wrote:
               | That's an absurd assertion. No, to a customer, a bank run
               | is rapidly dealt with via the FDIC; we just had a great
               | example of this with SVB. Madoff's victims were not so
               | lucky.
        
               | pid-1 wrote:
               | Stocks have value because they are cash flow generating
               | assets, so if you sell low enough it will make economic
               | sense for someone to buy, except for some liquidity
               | catastrophe.
        
         | spaceman_2020 wrote:
         | The SEC just lost its case against Ripple, so I don't know
         | what's happening on the regulatory front.
        
           | raesene9 wrote:
           | It didn't lose the whole case, it lost certain summary
           | judgement issues, and prevailed on others, the real case
           | there is still to come.
           | 
           | It was overall a bit of a win for ripple but far from the end
           | of the game.
        
           | treyd wrote:
           | The ruling published yesterday was just summary judgements
           | which can be appealed. The actual trial hasn't even happened
           | yet.
        
             | monero-xmr wrote:
             | The trial isn't interesting. The summary judgment says it's
             | legal to sell cryptocurrencies if you do so anonymously on
             | retail exchanges, and the tokens also are not securities.
             | Very interesting outcome. The appeals are likely to fail
             | from my reading of various analyses.
        
       | toomuchtodo wrote:
       | https://archive.is/j50GA
        
       | busterarm wrote:
       | Not even a whole month since the last layoff...
        
       | moneywoes wrote:
       | Interesting I recall them mentioning how they were resistant to
       | the market turmoil that caused Coinbase to conduct their layoffs
        
         | ansible wrote:
         | Well, they're also being sued by the SEC...
        
       | ElevenLathe wrote:
       | It's pretty insane that they have this many employees to start
       | with.
       | 
       | > Before the layoffs, Binance had a global staff of 8,000.
       | 
       | The whole thing is self-evidently a massive scam! There are still
       | 7,000 people working there!
        
         | SamReidHughes wrote:
         | Binance is a crypto exchange. Where's the scam?
        
       | thrwbin wrote:
       | [flagged]
        
       | zeitgeistcowboy wrote:
       | The article says a spokesperson said they "need to focus on
       | talent density." Talent density is a new buzz word to me!
        
         | cozzyd wrote:
         | sounds like they need smaller offices.
        
         | pzo wrote:
         | Seems like easy to optimize for it - just keep only the best 1
         | talent and fire everyone else!
        
           | bink wrote:
           | Congrats to the most talented. You're now doing the work of 5
           | people.
        
         | CoastalCoder wrote:
         | Man, that seems like a heck of a send-off for those employees.
         | 
         | There's no fig-leaf such as "they killed entire projects" or
         | "they pivoted".
         | 
         | Just the spokesperson saying that, if you're one of the laid-
         | off employees, it's because you lacked talent.
         | 
         | Not sure that's a company I'd want to work for.
        
           | kodah wrote:
           | I worked for a large fintech firm that used this as reasoning
           | to layoff 700-some employees years ago. They cited their
           | changing needs and the talent of those engineers juxtaposed
           | to their needs changing. I had seven friends among those
           | engineers, only one of which I would consider in a grey area
           | with respect to the skills he possessed that were relevant to
           | the times. The company refused to release a full list of
           | employees that were let go so we used Slack to create a list
           | of users deactivated between certain time periods (this gets
           | tricky with EU). What we learned is that most of them were
           | tenured employees with higher wages. Their wages (likely)
           | predated a movement that caused average wages at the company
           | to go down so that everyone on every team with the same title
           | made the same amount. These were basically the people left
           | over who didn't quit but stopped getting raises because they
           | were above pay bands for their level.
        
             | throwaway5959 wrote:
             | Sounds like something straight out of the end of Margin
             | Call.
        
         | slt2021 wrote:
         | are they bashing people they laid off, assuming that 1k people
         | were less talented than the rest?
        
           | WinstonSmith84 wrote:
           | No offence, but that's usually how capitalism works, the
           | least talented are the first to go - unless we're talking
           | about Twitter and then it's about showing off at the office.
        
             | yourapostasy wrote:
             | In larger companies, for some values of "talented" that
             | comprises non-technical factors like political acumen, yes.
             | If the "talented" label is meant as a shorthand for some
             | kind of meritocratic scale, then I have my doubts about
             | that.
             | 
             | I've long since lost my astonishment at the revealed
             | preferences in layoff selection criteria. It isn't a
             | complete Machiavellian free-for-all, but merit and fine-
             | grained logic usually don't prevail at the top of the
             | criteria list in the trenches.
        
             | JohnFen wrote:
             | I've heard people claim this, but I've never actually seen
             | it happen in practice.
        
             | [deleted]
        
             | tuckerpo wrote:
             | If your statement is true, then the inverse must also hold:
             | hiring is based on merit, which we all know to be untrue.
        
             | nonameiguess wrote:
             | I highly doubt that's true. It may be what you want in an
             | ideal world, but in reality, very few, if any, companies of
             | this size have any internal ranking system that can
             | accurately identify the 1000 least talented people company-
             | wide. More likely, they're laying off the last 1000 hired
             | if they want to optimize for losing the least institutional
             | knowledge, the first 1000 hired if they want to optimize
             | for immediate labor cost savings, or just laying off all
             | the people that are part of teams working on projects that
             | got scrapped, who happened to be in the wrong place at the
             | wrong time.
        
             | adamredwoods wrote:
             | Never in any layoff I've been a part of, have the least
             | talented workers been let go first. It's usually by
             | category: contractors, age (early-retirement), department,
             | or job description.
        
               | loeg wrote:
               | This is the fundamental conceit of stack-ranking layoffs,
               | which Microsoft did annually for many years.
        
               | HWR_14 wrote:
               | Don't forget "most talented people who accept the
               | severance pay and get another job" from the pre-layoff
               | voluntary departure.
        
               | lanstin wrote:
               | I have seen a lot of layoffs over the years and I would
               | put the main targets into here buckets:
               | 
               | 1. People with bad relationships with he boss and bosses
               | boss. 2. People with higher salaries. 3. Unlucky folks
               | where an entire line of business or corporate department
               | is shut down.
               | 
               | Number 1 is the vast majority of the cases. Make sure
               | your boss smiles when they see you and you can sleep well
               | at night.
        
               | renewiltord wrote:
               | You can do early-retirement by age but if you do lay-offs
               | by age that's going to be an age-discrimination problem
               | if you target >40.
        
               | WinstonSmith84 wrote:
               | I've seen some layoffs and the first to go where the
               | people the most "unproductive". So, there were sale
               | people (which were actually pretty decent, but they
               | "cost" money and had to go), and then there were also
               | people who were just "less" good. Less senior, more
               | junior and could not do things autonomously.
               | 
               | But I can agree that it's always very subjective and of
               | course the one who is friend with the boss ABC will have
               | more chance despite maybe performing less good...
        
           | account-5 wrote:
           | Sound like that's exactly what they're doing.
        
           | whimsicalism wrote:
           | yes
        
         | tikhonj wrote:
         | Implying you'd have to be pretty dense to work at Binance.
        
         | ehnto wrote:
         | Only the densest talent available made the cut. Part of this
         | new talent push was upgrading the chairs, to handle the
         | increased talent density. Our people are 90% tungsten and it's
         | something we are really proud of.
        
           | ineedasername wrote:
           | The next big crypto scandal headline:
           | 
           |  _"Authorities Investigating <DeFi Corp> as Evidence that
           | Depleted Uranium Propped Up Dense Talent, Actually Empty
           | Inside"_
        
           | stubybubs wrote:
           | Osmium devs are the new 10x devs.
        
           | FreshStart wrote:
           | Stalionstatues.. Each and every ounce.
        
         | [deleted]
        
       | RyanAdamas wrote:
       | We just need a law that bans cryptographic exchanges and
       | transfers in the USA. They are not assets, they provide no real
       | utility, they are just speculative devices that no longer
       | function as originally intended; as a replacement for fiat
       | currency. So, it simply needs to be outlawed and all the money
       | repatriated into whatever currency it came from; most of it
       | dollars.
        
         | menus wrote:
         | Seems like a knee-jerk reaction. Why is the opinion always to
         | ban or abolish a broken system instead of improving it?
        
         | imchillyb wrote:
         | That's the opposite direction the federal government has moved.
         | 
         | You're currently spewing nonsense.
        
         | Zpalmtree wrote:
         | stop running code I don't like :(((
        
           | 1-more wrote:
           | This isn't outlandish. Many things are illegal to run on your
           | computer.
        
           | RyanAdamas wrote:
           | Stop exchanging code for dollars and pretending it provides
           | any social or economic utility.
        
         | 1-more wrote:
         | how would you get the money back? Wouldn't that tank the price
         | of everything? Not saying I'm categorically opposed to that but
         | you'd essentially be confiscating the crypto since it'd be
         | impossible to sell it for anything close to what you paid,
         | right?
        
           | RyanAdamas wrote:
           | It would be a US law so they can get their money back in
           | foreign currencies since its cryptographic and can be
           | transferred to other exchanges internationally, and if they
           | want dollars they can exchange it on the open market.
           | Thankfully, that would increase the demand for dollars and
           | continue to strengthen a currency weakened by a massive
           | speculative market primed through international drug
           | trafficking.
        
             | 1-more wrote:
             | I see I read exchanges not as "marketplaces" but as
             | "transfers of crypto in exchange for money" like you were
             | going to have the government forcibly compel everyone in
             | the US holding crypto to sell it for a flat USD value and
             | thusly divest themselves. So your idea would be that they
             | can keep holding crypto or they can sell it for otherd-
             | than-USD-fiat in non-US exchanges. Makes sense.
        
         | chrisco255 wrote:
         | First provide me with a universal, legal definition of asset,
         | before we argue about whether or not something is an asset.
         | Nevermind that I'm sure if I pried into the particulars of your
         | life, I would find something cryptographic or digital that
         | belongs to you, which you would be disappointed to live
         | without, even if it's meaningless to most people. And as a
         | lover of liberty, I would never wish to deprive you of the
         | right to own it and transfer it to whomever you wish under
         | whatever acceptable terms you both come to.
        
           | RyanAdamas wrote:
           | First, provide me with a universal definition of liberty. I
           | would hate for you to infringe on other peoples and so would
           | need you to clarify a valid and sound method for determining
           | in all cases where yours begins and others ends. Then, apply
           | it to the functions and limitations of a democratic system
           | for determining those boundaries and from there we can begin
           | to unravel the complexity of bad faith arguments and red
           | herrings.
           | 
           | You can have my cryptokitties.
        
           | HWR_14 wrote:
           | > I would find something cryptographic or digital that
           | belongs to you, which you would be disappointed to live
           | without
           | 
           | That "or digital" is doing a lot of heavy lifting. You are
           | effectively claiming that crypto has to be allowed or digital
           | photos with friends are right behind.
        
         | arbol wrote:
         | This seems pretty out of touch. They're the first challenger to
         | fiat currencies ever. Outlawing them will stifle any innovation
         | that arises from their development.
        
           | Tao3300 wrote:
           | > the first challenger to fiat currencies ever
           | 
           | Except they fail at that. Any further innovation will be more
           | of the same: grift.
        
           | dragonwriter wrote:
           | > They're the first challenger to fiat currencies ever.
           | 
           | Direct commodity and commodity-representational currencies
           | were the first challengers to fiat currencies, and for about
           | the first millenium after the first know fiat was introduced,
           | generally _won_.
           | 
           | Cryptocurrency is not the "first challenger to fiat currency
           | ever".
        
             | chrisco255 wrote:
             | Nothing is ever "won". The world remains as dynamic as
             | ever. Pride comes before fall, as they say.
             | 
             | Also, until the 70s, USD was backed by gold.
        
               | dragonwriter wrote:
               | > Nothing is ever "won".
               | 
               | Yes, the simple past ("for the first millenium after the
               | 10th century introduction of fiat, commodity currency
               | alternatives mostly won") has different meaning than the
               | past perfect ("commodity currencies have won the battle
               | with fiat currencies"), and I choose which one I used for
               | the exact meaning intended.
               | 
               | > Also, until the 70s, USD was backed by gold.
               | 
               | Yes, the US dollar until recently was most of the time a
               | commodity (either direct in coins traded for their
               | metalli1a13@c value, or representational in redeemable
               | notes) currency, part of the millenium of triumph of
               | commodity over fiat.
        
           | mehlmao wrote:
           | The only notable innovation to come from cryptocurrencies is
           | the rise of ransomware, a drain on the global economy that
           | funds terrorists and dictatorships.
        
             | tlb wrote:
             | There was ransomware in the 90s. For small amounts, they
             | often requested prepaid gift cards or for you to call
             | premium phone numbers. For larger amounts, wire transfers
             | to countries with weak law enforcement.
             | 
             | Cyberextortion rings still operate out of countries with
             | weak law enforcement or tacit approval of their
             | governments, so I don't know if disappearance of
             | cryptocurrency would hurt them much.
        
           | RyanAdamas wrote:
           | Outlawing Cryptographic exchanges and transfers are not
           | outlawing distributed ledger technology nor networks with
           | tokens not denominated or traded in US dollars.
        
           | itsoktocry wrote:
           | > _Outlawing them will stifle any innovation that arises from
           | their development._
           | 
           |  _This_ seems pretty out of touch.
           | 
           | I own some crypto. Mostly BTC, some ETH and even a bit of XRP
           | I've held onto. I can see the utility, maybe. But, what
           | innovation is happening in this space? It's mostly scam after
           | scam.
           | 
           | There are literally _thousands_ of coins on CoinMarketCap.
           | What are they all doing?
        
         | glerk wrote:
         | > we just need a law
         | 
         | Who is "we"? How would this "law" be compatible with the US
         | constitution? How would this "law" be enforced? This must be
         | the most naive take in this entire thread.
        
         | vegasbrianc wrote:
         | The federal courts disagree with your opinion today
         | https://www.bloomberg.com/news/newsletters/2023-07-13/what-d...
        
           | RyanAdamas wrote:
           | No, they didn't. They disagreed with a federal agency's
           | attempt to regulate. They didn't overturn a law banning
           | cryptocurrencies.
        
       | ot wrote:
       | > It was not easy saying no to Super bowl ads, stadium naming
       | rights, large sponsor deals a few months ago, but we did. Today,
       | we are hiring for 2000 open positions for #Binance.
       | 
       | https://twitter.com/cz_binance/status/1537013824666095617
       | 
       | Jun 2022, didn't age well.
        
         | jdjdjdhhd wrote:
         | Aged not too bad I would say
        
         | koolba wrote:
         | > Jun 2022, didn't age well.
         | 
         | A public statement lasting a year in the Wild West that is
         | crypto isn't the worst.
         | 
         | Though that's primarily due to the lowness of the bar.
        
         | arp242 wrote:
         | Knew someone who worked at Binance, as support. I'm sure he's
         | competent enough at his job, but he has no special skills or
         | anything. He made more money than I did as a senior software
         | dev at the time. It seems not only did they hire a lot of
         | people, they also paid them an ungodly amount of money.
        
           | ethanbond wrote:
           | Probably mitigates the risk of whistleblowers, if you can
           | keep it up.
        
             | arp242 wrote:
             | I guess that's a possibility, ut my bet is they just had
             | more money flowing around than sense.
        
               | ethbr0 wrote:
               | Typically it's more growth than money/sense.
               | 
               | Growth without proper management papers over a lot of
               | stupid hiring decisions, 'because we need more people
               | ASAP'.
        
           | CydeWeys wrote:
           | It sounds like he didn't make that much money for long.
           | Better to have a real career where you're making good money
           | every year, year after year.
        
             | freeone3000 wrote:
             | I don't think those exist. It is much, much better to
             | continually hop when the raises are 20% or more for doing
             | so.
        
               | NSMutableSet wrote:
               | My annual comp increases at FAANG are not 20%, but they
               | have been consistent increases of roughly $45,000 a year,
               | for little effort. I suppose it is a trap, but I am still
               | content.
        
               | CydeWeys wrote:
               | Huh? You don't think real careers making good money
               | exist? I don't know what to tell you.
               | 
               | But the main issue here is that someone without any
               | special skills ended up making a shitload of money as a
               | fluke by working at Binance for a short period of time.
               | It's very unlikely they're going to be able to get
               | another job even nearly that good, let alone more jobs
               | 20% better, because they don't actually have real
               | marketable skills and it was just a fluke.
        
               | operatingthetan wrote:
               | >Huh? You don't think real careers making good money
               | exist? I don't know what to tell you.
               | 
               | They were talking about how wages at most jobs stagnate
               | if you are a long-term employee. Which I find to be true
               | as well.
        
           | rvz wrote:
           | Right. so Binance over-hired and over-paid for roles just
           | like the rest of the tech industry in 2021 - 2022 then, as
           | the free money and zero interest rate mania came to an end.
        
           | brycelarkin wrote:
           | Cash comp or was he also compensated in tokens?
        
             | arp242 wrote:
             | Knowing myself I probably asked if he got paid in real
             | money or monopoly money, but I don't recall the answer.
             | It's a friend of a friend I've spoken to a few times over
             | the last ten years, and the last time was a little over a
             | year ago (when we talked about his job, among other
             | things).
        
             | Asparagirl wrote:
             | Important point -- many of these employees were "paid" at
             | least half of their salary in the company's own scrip, a
             | shitcoin, and with extra social pressure to not convert it
             | to real money.
        
           | gumby wrote:
           | Hope for their sake they were paid in actual money.
        
             | victords wrote:
             | They did pay their bonus in some Binance crypto coin, but
             | at least their base salary was relatively high.
        
           | justapassenger wrote:
           | High salaries are part of the grift.
           | 
           | Makes you look really successful (they pay a lot, so they
           | must be super profitable!) and helps, at least partially,
           | select employees who won't be asking questions, just do their
           | job and collect paychecks.
        
             | MrYellowP wrote:
             | Yeah, in contrast to all the other companies where people
             | ask questions all the time, don't simply do their jobs like
             | they should and don't collect paychecks.
             | 
             | Paying high salaries! Wow! So evil!
             | 
             | Do you not know that your comment makes you sound like a
             | wacko who invents nonsense just for the silly attempt of
             | shitting at them? No? Well, now you know.
        
               | justapassenger wrote:
               | "It is difficult to get a man to understand something,
               | when his salary depends on his not understanding it." is
               | not a quote I've invented. Now apply that to getting way
               | above the market salary.
               | 
               | Yes, most of the people don't question how ethical their
               | jobs are. But you make them even less likely to do that
               | if you throw money at them.
        
               | natpalmer1776 wrote:
               | I'm sure there are other ways you could have phrased this
               | to not come off as a personal attack on someone's
               | character.
        
               | FormerBandmate wrote:
               | Do you not ask questions at your job? That sounds
               | terrible
        
             | baby wrote:
             | Your comment makes no sense to me
        
               | ThalesX wrote:
               | If I sell you a book on how to be succesful, and am not
               | succesful, I have to fake success to get you to buy. So
               | maybe I'll rent a sports car, overspend on my rent, go to
               | holidays I can't afford, etc. because enough people might
               | be fooled to allow me to actually afford these things.
        
               | justapassenger wrote:
               | Tons of "financial influencers" have constant videos of
               | them with lambos and other expensive toys. It's basically
               | the same thing - image is everything in speculative parts
               | of the financial market.
        
               | [deleted]
        
               | TrainedMonkey wrote:
               | High salaries makes people want to work there which
               | creates competition which in turn drives prestige.
               | 
               | Not asking questions is a little facetious, however it is
               | plausible that things like questionable business
               | practices are easier to overlook when working / applying
               | for a job because $$$. In other words, it's very hard to
               | explain a concept to someone if his livelihood depends on
               | him not understanding it.
        
       | ForOldHack wrote:
       | How did they have 1000 people in the first place?
        
         | peschu wrote:
         | The article saysthat they had 8000 before layoffs started...
         | What are all these people doing at an exchange? Maybe they work
         | with orders on paper in the background? :D
        
           | retube wrote:
           | They operate in 100 countries, have 30m users, support
           | trading in 360 coins PLUS a load of derivatives on top and
           | process $15bn of trades per day. And they are not just "an
           | exchange". They are also custody, clearing and settlements.
           | Frankly I am amazed they are only 8,000.
        
         | john_max_1 wrote:
         | Companies don't hire people.
         | 
         | Managers do.
         | 
         | If I am a Director of Engineering with 5 reports and you are a
         | Director of Engineering with 10 reports then you are going for
         | the VP of Eng role on next promotion.
         | 
         | Like it or hate it that's why every company bloats up over
         | time.
         | 
         | Company pays salaries.
         | 
         | And you enlarge your status.
        
       | theusus wrote:
       | I remember getting an interview opportunity a couple of months
       | ago. And the hiring manager said they are going fine. _Didn 't
       | age well_
        
       | robocat wrote:
       | Off topic, but Binance UI and onboarding is a complete tipster
       | fire.
       | 
       | A binance user asked me to pay USD40 using binance: I went
       | through the process of signing up - it was incredibly difficult
       | with significant roadblocks at every step - horrific UI choices.
       | 
       | A company that fails to onboard a paying user is not going to do
       | well.
       | 
       | The only reason I made it through the onboarding was that I was
       | very stubborn and I have sufficient knowledge to eventually work
       | past the worst UI blocks. It was an extremely frustrating and
       | confusing process.
       | 
       | Even once I had passed the KYC compliance and got money deposited
       | (more nightmare), the UI is still a shitfest of unclear
       | usability. So many obvious failures at every step.
       | 
       | Also they had an incentive system to refer someone, but it
       | appears to be completely broken so even their signup incentives
       | are a failure.
       | 
       | I have _never_ had such a poor experience trying to give a
       | company some money.
        
         | mythrwy wrote:
         | Their trading platform used to be awesome though although I
         | haven't been on it since they banned US users 5 or 6 years ago.
         | It was very well done in my opinion.
        
       | WestCoastJustin wrote:
       | > Binance had a global staff of 8,000
       | 
       | A 12.5% reduction. Also, they are way larger than I thought with
       | 8k employees. I don't know what's involved with running an
       | exchange but they must be into lots of things with that many
       | folks.
        
         | bdcravens wrote:
         | They have around 100M registered users, so approximately 1
         | employee for every 100k users seems reasonable.
        
           | WestCoastJustin wrote:
           | Yes, totally. They probably have tons of support, sales, etc.
           | I'd imagine they have tons of contractors too with that many
           | users. Makes sense now.
        
           | loeg wrote:
           | That figure seems implausibly high. 1 in 80 humans on Earth
           | are not only participating in crypto but specifically have an
           | account on Binance? It certainly cannot be the number of
           | active users.
        
             | schmichael wrote:
             | It has been reported that CZ had 300 accounts himself, so
             | like most things in crypto the 100M number is to be taken
             | with a grain of salt.
        
             | spaceman_2020 wrote:
             | If its indeed true, the gap between onchain and offchain
             | users is even more immense.
             | 
             | On chain, there are not more than 100k users across chains
             | daily. Real users across all EVM chains is probably around
             | 20k/day. Major airdrops like Optimism and Arbitrum went out
             | to like 600k wallets (and most have multiple wallets).
             | OpenSea has like a few thousand daily active users.
             | 
             | Which makes you wonder - all these billions in funding for
             | serving just...100k real users? Because if its not onchain,
             | it might as well be a database.
        
             | [deleted]
        
         | tempsy wrote:
         | you need a lot of operations people like customer service for
         | an exchange. not really surprising.
        
         | UniverseHacker wrote:
         | I don't know if I'm just naive, but I'm always confused when I
         | see such a high headcount for companies with such simple tech,
         | the staff of Twitter (even after mass layoffs) confuses me
         | also.
         | 
         | I feel like these companies are solving a relatively simple
         | problem, and a single skilled engineer working full time could
         | probably make and maintain a decent scalable solution.
        
           | Guvante wrote:
           | I mean feel free to make the next Twitter with a single
           | Engineer if you think it is possible.
        
             | Tao3300 wrote:
             | Twitter is a weird example. The next Twitter has to be at
             | least as good as Twitter without the growing pains. The
             | initial product didn't scale well and probably was written
             | quickly by very few people.
        
           | [deleted]
        
           | julianeon wrote:
           | An exchange is not simple tech. It isn't a simple problem.
        
             | HWR_14 wrote:
             | Isn't it "an exchange _at scale_ is not simple tech ". I'd
             | imagine I could build an exchange to handle 100 users
             | pretty quickly.
        
           | [deleted]
        
           | jacquesm wrote:
           | Simple tech at scale rarely stays simple.
        
           | sonicshadow wrote:
           | True sign of the arrogant software engineer, believing they
           | can single-handedly recreate an entire company just because
           | they went to school in one subject for 4 years.
        
             | rognjen wrote:
             | Such vitriol! It's safer to assume they're inexperienced
             | than arrogant.
        
               | sonicshadow wrote:
               | Pretty much the definition of arrogance, being
               | inexperienced and still thinking they can do the work of
               | a hundred people
        
             | 8n4vidtmkvmk wrote:
             | I work at one such company and I still think most of us
             | aren't needed. I swear it's 90% red tape and BS holding
             | everyone back. I know I can build things 30x faster outside
             | of work, but I will also confess that it might not meet at
             | the accessibility guidelines and i18n and be user tested
             | and so forth.
        
             | [deleted]
        
             | RugnirViking wrote:
             | every profession does this. Have you ever spoken to
             | marketers about how important marketing is? or accountants?
             | most people have a massively outsized idea of their own
             | role to the point they wonder what other people even do.
             | 
             | The only difference with engineers is they can believe at
             | least in theory they could create the backbone of some
             | services, so they could have a shoddy mvp made in a few
             | days which they assume just needs a "little" work to top it
             | off, whereas others can't start without tech help, but
             | massively underestimate how much tech work is required for
             | their ideas.
             | 
             | If you dont believe me, hang around a startup space and see
             | how people talk about trying to find technical cofounders
        
         | ecshafer wrote:
         | NYSE has around 2000 employees. So I think this is more than
         | they need.
        
           | 1-more wrote:
           | OTOH NYSE operates in NY and US jurisdictions right? Binance
           | tries to operate everywhere.
        
             | SideburnsOfDoom wrote:
             | > Binance tries to operate everywhere.
             | 
             | Under which legal jurisdiction does Binance operate? It's
             | not "all of them". I'm not sure that it's "any of them".
        
               | 1-more wrote:
               | Fair cop, haha. It has designs on operating aboveboard I
               | think everywhere on earth right?
        
               | SideburnsOfDoom wrote:
               | And I have designs on flying to the moon by flapping my
               | arms.
        
           | [deleted]
        
         | WinstonSmith84 wrote:
         | There are dozens of protocols they need to integrate with and
         | keep up to date. Plus, those protocols change constantly. And
         | there are also new ones, and those which disappear... And then,
         | there is their whole infrastructure.
         | 
         | The support must be massive too. And the legal aspect must also
         | keep people busy from having to enforce various regulations to
         | having to answer to various governments...
         | 
         | So let's take a comparison: - facebook: 50k employee. What has
         | changed on Facebook for the last few years? So yes, there is
         | probably some support, the content enforcement of course must
         | keep a lot of people busy, but then?..
         | 
         | - snapchat: 5k employee. Well, for a social media platform
         | which is not changing at all and actually losing in revenue,
         | that's a big number
        
           | mvdtnz wrote:
           | You're assuming (in both the Binance and Facebook cases) that
           | the majority of headcount comes from product development
           | teams. Not true. The majority of that 8k/50k figure comes
           | from areas like sales, compliance, finance, HR and
           | management.
        
           | atraac wrote:
           | > facebook: 50k employee. What has changed on Facebook for
           | the last few years?
           | 
           | What do you mean? Facebook changes literally every day. Every
           | single day a piece of UI randomly stops working.
        
         | javajosh wrote:
         | In some corporate cultures, headcount is its own reward.
        
         | alfalfasprout wrote:
         | To be fair, exchanges are pretty complicated. That said, it
         | seems like a pretty high number.
        
       | throwaway5959 wrote:
       | Contractors on the Death Star.
        
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