Forthcoming crypto winter is mentioned by the CEO. Coinbase has let go of 18% of its total personnel

The cryptocurrency exchange platform Coinbase

According to the announcement made by the firm on Tuesday, the cryptocurrency exchange platform Coinbase terminated the employment of around 18 percent of its personnel, which is equivalent to nearly 1,100 workers. Coinbase CEO and co-founder Brian Armstrong cited an anticipated “crypto winter” and an imminent U.S. economic downturn as the reasons for the company’s decision to implement such severe cost reductions. According to Forbes, the term “crypto winter” refers to a period in which values “contract and stay low for a lengthy period of time.”

Coinbase CEO and co-founder Brian Armstrong

Armstrong said: “During previous crypto winters, we saw a big decrease in trading income, which is our primary source of revenue. Even if it’s difficult to make accurate forecasts about the economy or the markets, we make it a point to constantly prepare for the worst-case scenario so that we can continue to run the company successfully regardless of the circumstances.” He did, however, acknowledge that the pace of the company’s expansion was unsustainable. Coinbase was the first big cryptocurrency business to go public, and it did so in 2018 when it offered its shares to the general public.

Is Digital Currency Really The ‘Financial Future’?

A Bitcoin startup known as Coinbase has just gone public. “While we did all in our power to make this absolutely perfect, it is now abundantly evident to me that we employed more people than we needed,” Armstrong said. The workers who were affected by the news received it in a hurried manner. Coinbase workers who were impacted by the layoff were denied access to the platform by the corporation. Notifications were sent to the employees’ personal email accounts as a result of this. According to Armstrong, “given the number of workers who had access to sensitive customer information, it was regrettably the only feasible alternative,” and this choice was taken to guarantee that “not even a single individual took a reckless decision that affected the firm or themselves.”

A crypto winter or ice age?

Cryptocurrencies have been negatively impacted by worries about a recession and layoffs. The market for cryptocurrency has had a difficult time this year. More than half of Bitcoin’s value has been wiped off since the beginning of this year. In November of 2021, it reached a high of almost $69,000, setting a new record. Today, it may be purchased for around about $23,000. BlockFi and Crypto.com are just two examples of businesses in the cryptocurrency sector that have announced significant staff reductions. According to Eswar Prasad, a professor of economics at Cornell University, the peak of the cryptocurrency craze will occur around the year 2021.”That should be remembered as a defining moment. As a result, this indicated that cryptocurrency prices had increased substantially, which opened up a significant amount of opportunity for further declines.”

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