Coinbase Fires 18% of Its Workforce -- How Far Could the Stock Fall?
The recent carnage in the cryptocurrency markets is causing big problems for Coinbase Global (NASDAQ: COIN). When the price of Bitcoin and other digital assets were relentlessly rising during the pandemic, users were happy to pay Coinbase hefty fees to buy and sell on the platform. The company's incredible growth over the past two years was driven by speculation that prices would go ever higher, and for a long time they did just that.
The high-profile blowups of the Terra blockchain and Celsius Network's blockchain-integrated trading platform, along with the tumbling price of Bitcoin, have greatly cooled this speculative fervor. Business had already slowed for Coinbase in the first quarter, but the environment has now deteriorated to the point where the company is looking to drastically cut costs. In a note to employees on Tuesday, Coinbase CEO Brian Armstrong announced that 18% of the workforce would be laid off.
Image source: Coinbase.
Source Fool.com
