Coinbase Is Cutting 18% of Its Staff: Here's Why I'm Not Worried
The market for cryptocurrencies had an absolute monster year in 2021, almost tripling in value and ending the year at roughly $2.2 trillion. Coinbase Global (NASDAQ: COIN), a leading crypto brokerage and exchange business, took advantage of the strong market conditions to go public in April last year. But since then, shares have cratered 85%.
With the Federal Reserve adopting an aggressive stance to hike interest rates in order to curb rising inflation, investors have soured on cryptocurrencies and growth tech stocks, which has significantly damped the outlook for Coinbase. The business first implemented a hiring freeze, then rescinded pending job offers, and most recently, leadership decided to cut 18% of the workforce.
Coinbase is certainly facing tough times, but here's why I'm not worried.
Source Fool.com
