Coinbase's Latest Move Will Keep Me on the Sidelines for Now: Here's Why

A little more than six months ago, the entire cryptocurrency space had a market capitalization of around $2.8 trillion, according to CoinMarketCap. This valuation has aggressively dropped about 67% since. Therefore, it shouldn't come as much of a surprise that cryptocurrency exchange Coinbase Global (NASDAQ: COIN) is laying off about 18% of its workers.

These layoffs are logical for Coinbase, given what's going on in the space. However, the decision will keep me from buying Coinbase stock at this time.

In a June 14 blog post, CEO Brian Armstrong talked through the difficult decision to lay off 18% of his employees. In it, Armstrong said: "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."

Source Fool.com