While 2021 was a good year for cryptos, 2022 is off to a very bad start, since the prices of the main cryptocurrencies are collapsing. The media talk about crashes and of course it affects the companies that work in this field.
Coinbase, which is one of the leading crypto exchanges in the world, has had to revise its expansion plans because of this situation. On the company’s blog, Emilie Choi, president and chief operating officer, shared a note that was addressed to employees, and in which Coinbase explains how the exchange will weather the current crisis.
Coinbase had planned to recruit massively, finally these plans were reviewed
Avoidance, headwinds force Coinbase to cut spending. “We have made an important decision to ensure that we are rigorous in our prioritization of resources so that we can emerge from this bearish cycle even stronger than we are today”we read in this note.
Initially, Coinbase had planned to recruit massively, and to triple the size of the company. But due to market conditions, the exchange ultimately prefers to remain cautious and slow hiring, while reassessing its staffing needs against the most important priorities.
Prioritize the most important projects
” […] Now is the time to make sure we fully onboard all recent hires – so we can make sure they succeed at Coinbase. This slowdown will also force us to be more rigorous in our prioritization”the company told its employees.
Nevertheless, Coinbase assures that it has already foreseen all the scenarios. And the company is currently implementing the plan that was planned for the current situation.
Incidentally, Coinbase is still optimistic about its future. In another blog post titled “long life to crypto”, Kate Rouch recalls that the company has already gone through three years of downturn. And despite the fact that it was a tough time, Coinbase rose again.
“Being in crypto during this time was incredibly difficult and lonely. But Coinbase and the broader crypto economy have emerged stronger. Many new and exciting projects, entrepreneurs and communities were formed during this time”writes the marketing manager.
This is not the first crisis
In other words, while the forecasts for cryptos are currently very pessimistic, Coinbase still believes in the future of technology, in the long term. But in the meantime, the company must tighten its belt, review its expansion plans, slow down recruitment, and properly manage available resources.
In any case, financially, Coinbase would not be so bad. “We are in a position of strength – we have a strong balance sheet and have weathered several market downturns before, and emerged stronger each time”wrote the company to reassure its employees.
However, the worst may not yet be behind us. In a previous article, we relayed a forecast from Morgan Stanley suggesting that the descent into hell in the world of cryptos could continue. And the next culprits for the crash could be the NFTs and the metaverse.