Coinbase – one of the largest and most popular cryptocurrency exchanges in the western hemisphere – has announced that it is halting all hiring plans over the next several weeks until the crypto bear market begins to show signs of recuperation.
Coinbase Enforces Temporary End to Its Expansion
The digital currency world has been handed several blows in recent months due to many factors like inflation, the war between Russia and Ukraine, and rising Fed rates. The price of bitcoin has taken a nasty fall, with the currency dipping into the mid-$20,000 range last May. The asset has since jumped back up to about $30,000 at the time of writing, though to say the currency is in a good place would be far from the truth – especially when one remembers the $68,000 price bitcoin hit last November.
With so much negativity swirling about the crypto industry, Coinbase has said it has no choice but to put all hiring plans on hold. Initially, Coinbase had stated that it was going to use this year to expand its size by up to three times, though this is likely not going to happen now. The exchange’s chief people officer L.J. Brock explained in a blog post:
It’s become evident that we need to take more stringent measures to slow our headcount growth. Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation.
Coinbase has really suffered following the heavy price dips of bitcoin, Ethereum, and many other leading currencies. The exchange’s value was literally cut in half as announced in early June, and with this latest hiring freeze, it looks like it may be a while before the exchange lands back on its feet.
The problems surrounding the crypto space have seemingly affected other exchanges as well. With so much bearish activity occurring, Gemini in New York announced it was looking to reduce its staff numbers by roughly ten percent. At press time, the LinkedIn page for Gemini shows it employs about 1,000 people, meaning that with a ten percent cut, this number would be reduced to about 900.
As the company has shut down its main office, Gemini said many of the firings and layoffs would occur via Zoom.
This All Feels Familiar
Coinbase made headlines last April when it became the first cryptocurrency exchange in the world to go public. This means the company became tradeable on the Nasdaq and retail investors could purchase stock shares in the company. The situation was not that different from what we’re seeing today.
At that time, bitcoin rose to a new all-time high of about $57,000, though it wasn’t long before a series of losses began to drag it deeper into oblivion, and Coinbase and its stock ultimately went with it.