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Coinbase layoffs: Crypto dumping employees as Bitcoin, ethereum crash

The downtrend in cryptocurrencies over the past two months has put clever investors into withdrawal mode, erasing nearly $ 2 trillion in value from the entire market and now ruining the employment role of crypto exchanges.

The two most traded digital tokens, Bitcoin and Ethereum, have seen a slight increase in the last 24 hours but are approaching their lowest in two years.

Bitcoin fell nearly 30% last week, trading at around $ 22,172 per token on Wednesday afternoon, plunging from a high of around $ 68,000 per token last November, according to CoinGecko.

Ethereum went public on Wednesday at just over $ 1,217 per token, dropping almost 34% in value last week, well below its peak rating of around $ 4,900 per token in November 2021.

Coinbase reduces the workforce: Based in San Francisco, one of the busiest US cryptocurrency exchanges, Coinbase made a huge leap when it was launched in April 2021 and was valued at around $ 100 billion. The stock has been on the toboggan since November last year and had a market capitalization of just over $ 12 billion at the end of Wednesday’s regular trading.

The company, which currently mediates transactions for companies considering buying, selling, transferring, or storing over 100 different cryptocurrencies, has significantly reduced its workforce, according to corporate leadership. Adjusting for the long-term decline in digital tokens.

In the past few weeks, the company has evolved staff-related announcements from the initial short-term job freeze to a modest number of layoffs, but now plans to reduce staff by 18% (approximately 1,100 employees). Offer to cancel pending work.

Brian Armstrong, CEO of Coinbase, pointed out the need to control and increase efficiency in possible recessions and Coinbase’s burning rates. CNBC.. He also said the company grew “too fast” during the bull market.

“After more than a decade of economic boom, we seem to be in recession. The recession can lead to another cryptocurrency winter and can last for a long time,” Armstrong said on CNBC. Said in an email to.

He added that the past cryptocurrency winters have led to a significant decline in trading activity.

“Economics and markets are difficult to predict, but we are always planning the worst, so we can run our business in any environment.”

Layoffs are the entire crypto industry: In May, cryptocurrency companies Gemini Trust and Rain Financial joined Coinbase to announce layoffs and hiring freezes. luck.. In the midst of rising inflation and slowing demand, fintech companies cut more jobs in May than they combined in the first four months of 2022.

Two more cryptocurrency companies — with BlockFi on Monday — In a similar announcement, BlockFi CEO Zac Prince tweeted that the company “reduces workforce by about 20%,” and has 260 employees per Forbes, or 5 of its employees. Announced that% will be dismissed.

Record inflation is the driving force: Macro factors have contributed to the bearish crypto market, and rapid inflation continues, and the Federal Reserve is expected to raise interest rates this week to curb price increases. CNBC..

Last week, the US index sold out significantly. Tech-intensive Nasdaq plunges.. Bitcoin and other cryptocurrencies tend to correlate with stocks and other risk assets. As these indexes go down, so do the ciphers.

“Since November 2021, the Fed’s rate hikes and inflation control have dramatically changed sentiment. The Federal Reserve may need to ultimately work on the demand side to control inflation. Given that, we are potentially seeing a recession. “

“All this shows that the market hasn’t completely bottomed out and that if the Fed can’t take a break, it’s unlikely that the bulls will come back.”

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