The latest reports confirm that Coinbase, the second-largest cryptocurrency exchange has initiated a huge layoff of its employees. The reports reveal that Coinbase has announced that 18% of the total employees will be laid off.
The reason behind the exchange’s decision to lay off its employees is because of the constant crumbling being faced in the cryptocurrency industry. The digital currency exchange now finds itself in the most difficult situation and it is on the verge of losing substantial value in its stock prices.
Open Letter by Brian Armstrong
Brian Armstrong, the chief executive officer has recently issued an open letter in regards to the ongoing situation of Coinbase. He addressed the forceful decision the exchange had to make given the current circumstances of the cryptocurrency market.
Armstrong stated in the open letter that it is a very difficult decision for their exchange. However, they have no choice but to lay off around 1,000 employees to control the situation of their exchange.
He stated that during these hard times, it is very important for their exchange to stay healthy. In order to survive the economic downturn, they have to make difficult decisions and downsizing is the only option they had. At the time of writing, Coinbase has over 4,900 employees and after the layoff, 3,900 employees will be left at the exchange.
Predictions Made by Armstrong
Brian Armstrong stated that the situation of the cryptocurrency market may not recover for a while. The bearish trend in the cryptocurrency market has led to many exchanges making the harsh decision of downsizing.
He stated that the economic pressure is constantly building and it is going to have a huge negative impact on the entire crypto-verse. He mentioned that in over a decade, the global economy experienced a great boom.
However, the boom has now ended and the world is now moving towards a great recession. The recession may prove to be extremely harmful to the cryptocurrency industry. Once again, the cryptocurrency industry may end up within the cryptocurrency winter.
The situation may continue for a longer period of time and if that happens, then the crypto-verse may continue plunging.
Coinbase’s Stock Market Performance
For now, it seems that the exchange and its executives are trying really hard for the exchange to survive through the difficult times.
In the running year, the stock prices for Coinbase have dipped 80%. Surprisingly, the stock price of Coinbase has dipped over 85% from the time of its public debut back in April of 2021.
Given the current economic pressure and the cryptocurrency market downfall, it is feared that Coinbase’s stock prices may plunge even more.