Something very interesting is happening in the cryptocurrency sector that is worth following. Gemini has just cut approximately 30% of its workforce since the beginning of this year, and this is part of a much larger movement in the industry.

For those who don’t follow closely, Gemini was founded by the Winklevoss brothers and went public in September of last year. But since then, it has faced heavy financial pressure. In the fourth quarter, the company reported an annual loss of $585 million, including unrealized losses on crypto assets. To give an idea of the magnitude, this comes after losing more than $500 million the previous year.

The numbers are quite revealing. Revenue in the last quarter grew nearly 40% compared to the same period last year, reaching close to $60 million, but losses skyrocketed to $140.8 million from $27 million before. And market share? Less than 1% of the global share. The company now operates with about 445 people after significant cuts.

What’s most striking is that this isn’t an isolated case. Other platforms are also reducing their workforce. Algorand cut approximately 25% of its team. Even OP Labs, a major contributor to the Optimism ecosystem, eliminated about 20 positions. When you see players like Block Inc. laying off more than 4,000 employees, it’s clear that something bigger is happening in the sector.

The justification most are giving is adaptation to AI. Specifically, Gemini is reorienting itself to use more artificial intelligence to improve operational efficiency. It makes sense in a context where margins are tight and competition is fierce. Larger platforms dominate completely, so smaller players need to be very efficient.

The market context also doesn’t help. Bitcoin has fallen about 44% below its October peak, trading activity is low, volatility is high, macroeconomic uncertainty persists. In this scenario, cutting costs and betting on automation through AI becomes almost a matter of survival.

What does this mean moving forward? We will probably see more consolidation and restructuring in the sector. Exchanges that can be efficient with fewer people, using blockchain and technology intelligently, will come out ahead. Those who can’t adapt quickly enough will have difficulty competing.