The recent cryptocurrency market crash seems to have affected Coinbase. The leading digital asset platform will reportedly stop hiring employees for two weeks, freeze some business projects and reduce its spending on Amazon Web Services.
Coinbase temporarily slows down
The last few weeks and months were not good for the cryptocurrency market, with prices falling all over the charts, hurting some of the biggest companies in the industry. One of them was Coinbase, which reported losses in the first quarter of 2022 of more than $400 million.
Unsurprisingly, these developments led to a substantial change in direction for the largest US-based exchange, which recently said it had to slow down on new hires.
According to a report by The Information, the company has indeed complied with this and will stop hiring new staff for the next 14 days. The exchange will also stop certain marketing efforts and reduce your spending on Amazon Web Services.
“This slowdown will also force us to be more rigorous in our prioritization. We are in a strong position – we have a strong balance sheet and have been through several market downturns before, and each time we have emerged stronger,” Emilie Choi, president and COO, said in a letter obtained by The Information. on Coinbase.
The company also intends to compensate its employees by giving them stock grants. Last year, Coinbase went public on Nasdaq, becoming the first major exchange to list its shares publicly. At the time of launch, COIN was trading at almost $400, while it is currently hovering around $67.
The slowing of the hiring wave runs counter to the company’s ambitions to triple the size of the team. During the first quarter of 2022, Coinbase hired 1,200 employees, bringing the total number to over 5,000. Apparently, the future condition of the crypto market will play a vital role in how the expansion plays out throughout the year.
CPO statement on the matter
Surojit Chatterjee, Chief Product Officer at Coinbase, also weighed in on the company’s plans for the near-term future. The Executive tweeted that the exchange will turn its attention to “critical revenue-generating products.” Such offerings include retail and institutional services, as well as participation.
The executive further revealed that Coinbase will strengthen its team discipline and seek greater efficiency:
“Finally, I called on our teams to: Rigorously prioritize core initiatives for the greatest impact, improve efficiency, and ensure all of our projects are set up for long-term success.”
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This post Coinbase CPO and COO reveal plans to combat unfavorable market conditions
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