Coinbase might be anticipating Crypto Winter as it announced today that it will continue its hiring freeze amid a tumultuous recent market for both cryptocurrency and tech stocks.
Crypto Winter is a hypothetical period of time when the bear market stays dominating for a long period of time.
It hasn’t come yet. But might be just around the corner. As many analysts saying that the situation reminds them of the infamous events of the year 2017.
The difference is, though, that in 2022 the stakes are pretty much higher. As the Terra/LUNA crash have already shown us, billions of dollars can be lost in the matter of days.
Coinbase now gives us hints that something is definitely wrong with the market. One might even say, Coinbase is doing preparations for the Crypto Winter.
Coinbase foresees Crypto Winter?
As Decrypt reports, Coinbase will rescind some job offers for employees who had accepted positions but had not yet started working.
It was anticipated that Coinbase would slow hiring. The corresponding announcement came in May.
But today’s blog post from L.J. Brock, Coinbase’s chief people officer, confirms that the company will take a more severe turn.
According to Brock, the freeze will include not only new, unfilled positions, but also backfilling existing empty roles in the company.
Furthermore, Coinbase will pull some accepted offers for incoming employees who have yet to start.
That’s a bit more serious move.
Brock wrote that it is “not a decision we make lightly,” but that Coinbase sees it as “necessary to ensure we are only growing in the highest-priority areas.”
Things are not going well for Coinbase
In May, Coinbase posted a $430 million loss for Q1 2022. The company was clearly missing analysts’ predictions on both profit and revenue for the quarter.
Coinbase’s stock price is down more than 40% over the last month alone at a current price of under $74 per share.
According to Brock, volatility alongside larger economic factors may test the company in new ways. But Coinbase will come out stronger on the other side, he says.