Coinbase seems to have been affected by the recent cryptocurrency market crash. According to reports, the leading digital asset platform will stop hiring employees for 2 weeks, freeze certain business projects, and reduce its spending on Amazon Web Services.
Coinbase Temporarily Hits The Brakes
The cryptocurrency market has been in turmoil for several weeks and months. Prices fell across all charts and this caused havoc for some of the biggest companies in the sector. Coinbase was one of these companies, reporting Q1 2022 losses exceeding $400 million.
These developments were somewhat expected and led to a significant change in direction for the largest US-based exchange. It recently stated that it needed to slow down new hires.
According to The Information, the company is following through and will cease hiring new employees for the next 14-days. The exchange will also stop certain business ventures and decrease its spending on Amazon Web Services.
“This slowdown will also force us into more careful prioritization. We are in a strong place — we have a solid financial position and we’ve seen several market downturns before and always come out stronger,” Emilie Choi, President and COO of Coinbase, stated in a letter.
It also plans to give stock grants to its employees as a way of compensating them. Coinbase became the first major exchange to offer its shares publicly traded last year when it began trading on Nasdaq. COIN was traded for nearly $400 upon its launch. It currently trades at around $67.
The company’s plans to triple its team size is being thwarted by the slow hiring. Coinbase employed 1,200 people in Q1 2022 to bring the total staff to more than 5,000. The future state of the crypto market will be a key factor in the growth of the company throughout the year, according to the signs.
CPO Statement on the Matter
Surojit Chatterjee, Chief Product Officer at Coinbase, also spoke out about the company’s short-term plans. According to the executive, the exchange will focus its attention on “critical revenue-generating product.” These offerings include retail and institutional services as well as staking.
Further, the executive stated that Coinbase would strengthen its team’s discipline as well as look for greater efficiency.
“Last but not least, I urged our teams to prioritize core initiatives for maximum impact, increase efficiencies and ensure that all projects are set up for success for the long-term.”
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