Cryptocurrency evangelists love telling the world just how different their unregulated world is from that of the mainstream money map, but their bid for widespread acceptance may just end up being their doom as well.
That’s because, as cryptocurrencies court layman investors, the strategies employed around buying and selling these assets will become ever more milquetoast. The economically-minded among them will behave as they always have, hedging their bets with something much more trustworthy than Dogecoin or Ethereum.
And this is why many are predicting that a “crypto winter” is upon us.
Coinbase is laying off almost a fifth of its workforce amid a collapse in its stock and crypto prices.
The cryptocurrency exchange will cut 18% of full-time jobs, according to an email sent to employees Tuesday morning. Coinbase has roughly 5,000 full-time workers, translating to a head count reduction of around 1,100 people.Trending:
Shares of Coinbase closed down .83%.
The company wasn’t afraid to call a spade a spade.
CEO Brian Armstrong pointed to a possible recession, and a need to manage Coinbase’s burn rate and increase efficiency. He also said the company grew “too quickly” during a bull market.
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” Armstrong said in the email, adding that past crypto winters have resulted in a significant decline in trading activity. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
Armstrong would go on to suggest that the company had vastly “over-hired”, and that this was merely a corrective action meant to shore up confidence in the company’s future.