Coinbase Announces Cost-Cutting Measures; Winklevoss Twins’ Gemini Cutting 10% of its Staff

Source: medium.com

Coinbase is the latest cryptocurrency firm to announce cutbacks.

In a blog post written by L.J. Brock, the Chief People Officer, the cryptocurrency company said that it will extend its hiring pause for both new and backfill roles for the foreseeable future and cancel some of the accepted offers.

Brock stated that the cutbacks are a way of responding to the current cryptocurrency market conditions and part of their ongoing business prioritization efforts.

The new measures will see Coinbase revoke “a number of accepted offers” to prospects who are yet to start, and pro-long the two-week hiring half “for as long as this macroenvironment requires.”

The hiring pause is just a continuation of a plan announced by Coinbase last month.

Cryptocurrency exchange platforms globally have felt the effects of the crypto crash. Bitcoin billionaires, Cameron and Tyler Winklevoss have also announced plans to lay off 10% of workers at Gemini, a U.S based cryptocurrency exchange.

The twins announced this in a blog post on Thursday morning. The two stated that the cryptocurrency industry is in a “contraception phase” called “crypto winter,” which has been worsened by the prevailing macroeconomic and geopolitical turmoil.

In recent weeks, Bitso, Latin America’s top cryptocurrency exchange, fired 80 employees, Argentina’s Beunbit almost halved its workforce, and the Middle Eastern cryptocurrency exchange, Rain, laid off dozens of its workers.

“Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation,” wrote Brock.

The last few weeks have been brutal for the cryptocurrency market. Half a trillion dollars have been wiped off the cryptocurrency industry’s market cap as one of the common U.S dollar-pegged stablecoins, TerraUSD, collapsed virtually overnight.

Source: zipmex.com

It is not clear whether the recent bearish move in the cryptocurrency market marks the beginning of the next crypto winter (a bear market that runs for many years on a cyclic basis for the cryptocurrency asset class), but the dropping market volumes on cryptocurrency exchanges like Coinbase could be an indication that we are headed in that direction.

The last crypto winter ran from 2018 up to the fall of 2020 as cryptocurrency value dropped and mass layoffs were witnessed.

The Gemini cryptocurrency company was founded in 2014 and has a value of $7.1 billion. According to PitchBook, its payroll has 1,033 people, meaning that about 100 workers will be affected by the layoff.

In a memo, Gemini has stated that it wants to focus on products that will help it accomplish its mission, and its team leaders will evaluate whether their teams are right-sized to cope with the “current, turbulent market conditions that are likely to persist for some time.”

Part of the staff-wide memo read:

“Today is a tough day, but one that will make Gemini better over the long run.”

However, the cryptocurrency companies’ woes haven’t stopped venture capitalists from pouring money into the cryptocurrency ecosystem. Binance Labs, the venture arm of the Binance cryptocurrency exchange, has raised $500 million for a fund to be invested in Web3 start-ups.

Bitcoin Price and Ethereum Price Slip Friday

Source: news.bitcoin.com

In other crypto news, the prices of Bitcoin and Ethereum, the two leading cryptocurrencies in market capitalization, dropped on Friday. The Bitcoin price was below the $30,000 mark while the Ethereum price was below the $1,800 mark. At the time of writing this article, Binance, Coinbase, and CoinMarketCap showed a Bitcoin price of about $29,516 and an Ethereum price of about $1,748.

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