Coinbase pauses hiring further to combat Macro Economic Conditions

Crypto market implosion impacted the exchanges in a disastrous manner.

After the market crashed in the second week of May, many investors witnessed the loss of money in thin air. The market crash not just impacted the investors. The companies dealing in cryptocurrencies, crypto exchanges were also severely hit by the crypto market crash. There was loss of billions of dollars for the companies and exchanges as well. Since the crash impacted the players of crypto devastatingly, the crypto exchanges necessarily took unpopular decision of freezing hiring and to even revoke the accepted offers by the people, in an attempt to cut the cost of the company. Cryptocurrency exchange such as Coinbase is the standing example of the impact that the crypto crash has had.

Let’s dive deeper into the reality of the crypto exchanges.

Coinbase to freeze Hiring and to revoke offers!

Coinbase Global INC went on to announce that it will extend the pause in hiring to combat the current situations and to foresee the future of the company. It also went ahead and stated that in order to deal with current macroeconomic conditions, it is going to rescind a number of accepted offers.

In the lead up to the pause, Coinbase had already frozen hiring for the past two weeks, as the fears among the investors increased and as they started withdrawing their funds, exchanges also started losing their funds.

Coinbase’s Chief People Officer’s comments.

Coinbase’s Chief People Officer commented that “We always knew crypto would be volatile, but when volatility is combined with large economic factors, it may test the company’s accountability.”

After the news started spreading around the market, Coinbase’s shares started going down further. The company’s stock is reportedly down more than 75% since its debut in the market. Factually, Coinbase had planned to triple its head count at the beginning of 2022. But since the crash, the company lost around $430 Million, the company decided to stop the hiring process and revoke the offer given.

Writer’s report:

Since the market crash, the people involved in crypto market have lost a lot. Some of the investors went on to lose their life savings, education fees and what not. Not only that, but also the people who did not invest but were part of crypto exchanges, crypto market also lost a lot. Many of them were terminated by the exchanges in an attempt to cut cost. Since the turmoil, an estimate of 15,000 tech workers lost their jobs in may alone.