Coinbase has announced that it will be scaling down its hiring push as the cryptocurrency market has taken a surprise downturn.
Coinbase is the third biggest cryptocurrency exchange by volume. It made the announcement via a blog post penned by the company’s president and COO Emilie Choi.
“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals”, Choi wrote.
One of the company’s priorities is to achieve the profitability targets that investors expect from it, Choi added.
The instability that cryptocurrencies have witnessed of late, not least the crash of the Terra UST stablecoin, has plummeted the company’s own stock. Coinbase stock is down 80% as of trading today compared to its initial public offering price.
The company is under even more pressure with Coinbase admitting that investors and shareholders may lose their money in the event that the exchange goes bankrupt.
CEO Brian Armstrong has tried to reassure stakeholders. He said there was “no risk of bankruptcy”.
All of these developments come under increased regulatory scrutiny of the crypto sector. The US Securities and Exchange Commission is attempting to issue guidance to help businesses operate safely without crossing regulatory redlines, but the process has proved difficult. The collapse of stablecoins has not helped.
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