The recent cryptocurrency market crash appears to have impacted Coinbase. The leading digital asset platform will reportedly stop hiring for two weeks, freeze some business projects and cut its spending on Amazon Web Services.
Coinbase is temporarily hitting the brakes
The past few weeks and months haven’t been great for the cryptocurrency market, with prices falling across all charts, hurting some of the industry’s biggest companies. One of them was Coinbase, which reported losses of over $400 million in the first quarter of 2022.
Somewhat expectedly, these developments resulted in a major shift in direction for the largest US-based exchange, which recently said it had to curb hiring.
According to a report by The Information, the company has actually done this consistently and will not be hiring any new employees for the next 14 days. The exchange will also halt certain business activities and reduce its spending on Amazon Web Services.
“This slowdown will also force us to be more rigorous in our prioritization. We’re in a strong position — we have a solid balance sheet, and we’ve been through multiple market declines and come out stronger each time,” Emilie Choi said in a letter obtained by The Information — President and COO — at Coinbase.
The company also intends to compensate its employees by providing stock grants. Last year, Coinbase began trading on the Nasdaq, becoming the first major exchange to have its shares publicly traded. At launch, COIN was trading at nearly $400 while it currently hovers around $67.
The slowing wave of hiring contradicts the company’s ambitions to triple team size. In the first quarter of 2022, Coinbase hired 1,200 employees, bringing the total to over 5,000. As it stands, the future state of the crypto market will play a crucial role in how the expansion will play out over the course of the year.
Statement from the CPO on the matter
Surojit Chatterjee – Chief Product Officer at Coinbase – also commented on the company’s plans for the near-term future. The executive tweeted that the exchange would turn its attention to “critical revenue-generating products.” These offerings include retail and institutional services, as well as staking.
The executive further revealed that Coinbase will strengthen its team’s discipline and look for greater efficiency:
“Finally, I have challenged our teams to rigorously prioritize core initiatives to maximize impact, improve efficiency and ensure all our projects are aligned for long-term success.”
Source: Crypto News Deutsch