Coinbase laid off over 60 employees

Representatives of the American trading platform Coinbase reported on the impact of the negative situation on the cryptocurrency market and their income component. Coinbase are suffering big losses and thus want to cut their costs and optimize them. The last time Coinbase made such radical decisions was in June. Then about 18% of employees left the exchange.

A few months later, Coinbase decided to stop hiring new employees. Despite this, the company failed to generate revenue and losses continued to mount. Revenue for the quarter fell 28% and total trading volumes fell 27%. In addition to the Coinbase indicators themselves, the company's shares also have negative indicators. Since the beginning of 2022, they have fallen by 80%, and since the beginning of November by 27%.

Earlier, representatives of Coinbase announced that the company's director of products had left the company. Surojit Chatterjee, although he lost his job and will find a permanent job elsewhere, will remain in the crypto exchange as a freelance advisor.

The recent situation with FTX did not pass by Coinbase either. The latter declare that they do not make any operations with users' funds without their knowledge. Brian Armstrong, who serves as CEO, said the firm has no affiliation with either Alameda Research or FTX. All their clients can withdraw money at any time.

For those who do not know what happened with FTX, we explain. On November 7, users of the American crypto exchange had difficulties with the withdrawal of funds from the exchange. In most cases, the case concerned bitcoins. Later, problems arose with the USDC stablecoin on the TRC-20 blockchain. Digital dollar transactions lasted not 5 minutes as expected, but 3 hours.

Binance said they were going to absorb FTX and many users of the American exchange wanted to withdraw their funds. Against the backdrop of these news, the FTT token began to rapidly lose value, and in a few hours the cost of FTT dropped from $19 to $5. At the time of publication of the material, the token of the American exchange was valued at $2.7, which led to huge losses for investors in FTT. In general, the value of the coin sank by 90% in a matter of days. However, if investors lost money and withdrew it, creating an even larger dump, then fans of futures transactions, who caught the “falling knife” and entered the trade in time with large leverage, were able to earn a lot of money. Because of this, Binance reduced the size of the maximum leverage from 25x to 10. By the way, the owner of the exchange lost 95% of his fortune. Traders in turn lost over $720,000,000 in total and the losses continue to grow.

Thus, not only the representatives of the American exchange and clients suffered from FTX, but also other platforms that allowed trading this coin, and Coinbase reports that they do not put any restrictions on their users and they can withdraw funds and record losses.