The crypto meltdown continues. Further waves of reckoning swept through the crypto industry, with Coinbase saying it would cut almost a fifth of its staff. The destruction in crypto markets has been broad and deep, with roughly $2 trillion of value having been erased across numerous cryptocurrencies since November 2021.
In a blog post, Chief Executive Brian Armstrong said “our employee costs are too high to effectively manage this uncertain market.”
Coinbase, one of the signal growth companies of the crypto boom, said it was slashing its workforce by 1,100 employees, or about 18% of its staff because the company had grown too quickly and a potential recession could lead to another crypto winter.
“We appear to be entering a recession after a 10+ year economic boom,” Mr. Armstrong wrote. “A recession could lead to another crypto winter and could last for an extended period. In past crypto winters, trading revenue (our largest revenue source) has declined significantly.”
Armstrong suggests that we are entering a recession after a 10+ year economic boom, which could result in a crypto winter that lasts for an extended period. In past crypto winters, Coinbase’s largest trading revenue source could.