The platform’s COO shared an update with employees and the public
Coinbase initially planned to triple the company’s size before the end of Q2 2022
Plans changed due to the latest downtrend in the crypto market
Q1 earnings also showed a massive $430 million loss for the company
COIN is down over 80% from its ATH in November 2021
Coinbase has halted plans to aggressively expand its workforce in 2022 and instead will focus on prioritizing resource management according to a statement shared by the company’s Chief Operating Officer, Emilie Choi.
The largest American cryptocurrency exchange by trading volume cited the condition of the crypto market as a major reason behind the decision to reassess its hiring plan. Choi said in a letter to employees that the company previously planned to triple in size.
As of the press time, the crypto markets are far off from the levels recorded towards the end of last year. Bitcoin is currently hovering around the $30K region after falling as low as $26,800 during last week’s massive market crash.
Leading tokens like Ethereum also experienced significant dips in prices and the total crypto market cap lost over $300 billion in a few days. EWN also reported huge liquidations for consecutive days between May 8 and May 14. Data shows that traders lost over $4 billion in that timeframe.
Moving forward, Coinbase will focus on leveraging the experts they have hired so far and look to weather the ongoing crypto storm.
Importantly, now is the time to ensure we are fully integrating all recent hires — so we can ensure that they are successful at Coinbase. This slow down will also force us to be more rigorous in our prioritization.
Coinbase Recorded $430 Million In Losses – Q1 2022 Earnings Report
As EWN’s Juhi Mirza reported, the major crypto exchange suffered huge losses during the first quarter of 2022. The company’s Q1 earnings report put the losses at a staggering $430 million.
Furthermore, Coinbase shares also took a hit and dipped significantly since around November 2021. Data shows the COIN is over 80% down from its $357 all-time high. The NASDAQ-traded equity product currently trades at $61.70, per Google Finance.