Trouble continues to brew for Coinbase, one of the leading cryptocurrency exchanges. After recent comments regarding customer asset protection and falling revenue, the company is now negating some accepted job offers. Moreover, the company will not hire new staff for a long time to come.
Things Look Problematic For Coinbase
These past few months have been rather rough for all crypto markets. Ongoing bearish pressure has kept prices of assets like Bitcoin and Ethereum down by over 50% from the 2021 all-time highs. Moreover, it affects companies active in the space, with Coinbase setting some rather problematic examples in recent months.
The company claims the market conditions forced its hand in rescinding accepted job offers. Going back on agreements is never a good look for any company, certainly not a publicly traded one. Additionally, the company has stopped hiring new staff and will likely lay off more people if these conditions do not improve. Growing too fast too quickly is always problematic for any company.
Coinbase Chief People Officer L J Brock adds:
“It has become evident that we need to take more stringent measures to slow our headcount growth” in response to market conditions and “ongoing business prioritisation efforts. We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways.”
By putting a freeze on hiring efforts, the company hopes to stave off more problems down the line. That may prove challenging, as the company’s value has dropped by over 70% this year. Cryptocurrencies will outlive companies like Coinbase for a long time to come, and there will always be new and better job opportunities.