Coinbase cuts 1,100 crypto jobs as Bitcoin plunges 10% Business

Coinbase, which lets people buy and sell Bitcoin and other cryptocurrencies, was valued at $86 billion in April 2021 when it floated on New York’s Nasdaq in what was considered a moment. history for cryptocurrency.

Shares have fallen 85% since then amid falling cryptocurrency prices and the broader stock market.

In a note to staff, Mr Armstrong said: ‘We appear to be heading into a recession after an economic boom of more than 10 years. A recession could lead to another crypto winter and could last for an extended period.

He said the company had grown “too quickly”, from 1,250 in early 2021 to around 5,000 today. “Although we did our best to make it perfect, in this case it is now clear to me that we have over-hired,” he said.

This week’s selloff was prompted by Binance, the world’s largest cryptocurrency exchange, briefly suspending trading in Bitcoin, the world’s largest digital token. The company blamed a technical error.

Celsius, another major cryptocurrency lender, halted all transactions on Monday, with bosses citing “extreme market conditions.” It remains frozen, with millions of users locked out of their accounts.

Cooling attitudes towards Bitcoin may be driven by the prospect of further central bank interest rate hikes to stifle inflation. Cryptocurrencies fell hard amid a flight from high-risk assets as monetary policy tightens globally.

Inflation hit 8.6% in the US last month, compared to a price rise of 9% in the UK.

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This notice was published: 2022-06-14 13:33:31

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