As a result of the continuous crypto market slump Coinbase one of the crypto flagships, has frozen hiring indefinitely
Coinbase Share Price Sees Red
Cryptocurrencies appear to be in the midst of a long winter, with many projects feeling the chill. Coinbase, one of the industry’s leaders, is drawing in its horns and has put a halt to new hires. It’s even gone so far as to fire some of its newest hires.
Coinbase became the darling representative of the crypto sector on Wall Street just over a year ago when its IPO exceeded all expectations.
The crypto flagship reached a value of more than $80 billion on its first day of trade. The New York Times called the gathering a “landmark moment” for the whole crypto industry.
However, it appears that this was Coinbase’s peak since its share price has fallen from $430 to $66 since then, with the exception of a surge in October and November last year. Last month, the price was as low as $41.
Coinbase Halts Hiring Indefinitely
Coinbase said two weeks ago that it would begin to scale back its recruiting due to market volatility.
As of today, the firm has added to its prior declaration by announcing that it will keep its hiring freeze in place forever, as well as rescinding some of the offers it had made recently.
According to an article on Entrepreneur.com, L.J Brook, Coinbase’s chief people officer, emailed the following to the company’s employees:
“As we manage through this downturn, we want to be transparent about the decisions we have to make in order to meaningfully manage expenses.”
“While we did not make this decision lightly, it is the prudent one given market conditions. We will continue to evaluate all of our options to responsibly navigate Coinbase through the current cycle. We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways.”
L.J Brook, Coinbase’s CPO
Coinbase isn’t the only company that has had to tighten its belt. On Thursday, Gemini announced that it would have to downsize its employees by 10%, citing the “crypto winter” as the reason. Employees at Gemini were told:
“As painful as this moment is, we ultimately see it as an opportunity to double-down on our strongest ideas and customer-centric products so that we may be the catalyst of innovation coming out of these leaner times that will help fuel the next cycle of crypto growth and adoption.”