Wednesday, February 21, 2024

The cryptocurrency winter is here as Coinbase cuts down on hiring

Coinbase has recently sent out emails that have alarmed candidates that they will not be in the company anytime soon.

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Imagine you are offered a job that you have been waiting for a very long time. It is the kind of opportunity that you have been longing for and you have already put your papers in the existing company, only to come to know that your offer has been rescinded.

The cryptocurrency exchange Coinbase announced that it is putting a hold on its hiring efforts for the foreseeable future. This includes rescinding some of the offers already made to candidates. Gemini, another cryptocurrency exchange also decided on cutting down 10% of its existing employees for the first time since the company was founded. They also issued a warning that “this is where we are now, in the contraction phase that is settling into a period of stasis — what our industry refers to as “crypto-winter”.

A memo from Coinbase’s CPO, L.J. Brock read, “In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers.”

In mid-May, Coinbase had temporarily put a hold on hiring but it re-assured many candidates that their offers will not be rescinded due to its slowed down efforts. This decision from the company has left many possible employees in a dilemma.

The recent Terra and Luna crash, along with the Bitcoin losing around 60% of its value is just the tip of what may have resulted in a decision like this. The ongoing Russia-Ukraine crisis and rising inflation also come into the picture.

According to crypto experts, stablecoins i.e. Terra and Luna are generally safe from crypto market crashes but their collapse has become a huge concern for cryptocurrency enthusiasts.

While some people are speculating that we are standing at the door of another crypto winter, others feel that this could be a result of something broader. Other companies like Robinhood and BitMEX have also cut down on their staff. The macroeconomic conditions are also a big reason why companies are pushing such efforts.

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