Bitcoin is now trading at $21,000, down about $47,000 since last November when it neared $68,000. Prominent companies like crypto exchange Coinbase, after hiring aggressively all year, have turned to layoffs. Aiming to cut about 18 percent of the work force, Coinbase is basically undoing the hiring gains it made this year. Those laid off will receive at least 14 weeks of severance, with tenured employees receiving an additional two weeks for every year worked after the first.
"We appear to be entering a recession after a 10+ year economic boom," wrote CEO Brian Armstrong in a notice to employees. "A recession could lead to another crypto winter, and could last for an extended period. In past crypto winters, trading revenue (our largest revenue source) has declined significantly…we always plan for the worst so we can operate the business through any environment." Armstrong also admitted to employees that the company grew too quickly and that, in order to survive crypto winters—they've handled four in the past—they need to slim down and better manage costs.
