Cryptocurrency exchange Coinbase (COIN) said it plans to reduce the number of employees by around 950 employees as part of a restructuring that is expected to be complete by the end of the second quarter.
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This figure would equate to around 20% of the Coinbase workforce.which stands at about 4,700 according to the company's website.
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In a US Securities and Exchange Commission filing on Tuesday, Coinbase said it is responding to โongoing market conditions affecting the crypto economy.โ
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The company expects the restructuring to cost between $149 million and $163 million.including $58 million to $68 million in cash charges related to employee compensation.
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coinbase started lose jobs in june when the cryptocurrency bear market began to take hold. CEO Brian Armstrong said at the time that the company had โgrown too fastโ during the cryptocurrency bull market, expanding to more than 5,000 employees from 1,250 by early 2021. The company began by cutting 1,100 jobs, equivalent to 18 % of your workforce at that time, followed by another 60 in november as the crypto winter turned even colder with the collapse of rival exchange FTX.
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Analysts on Wall Street reacted positively to Coinbase's job cut announcement on Tuesday. "We are encouraged by this morning's news as it shows the company is taking financial discipline seriously in a very challenging crypto/macro environment," Barclay's analysts wrote, while acknowledging that it could also be a sign that the company is preparing for a tough year ahead.
bitcoin (BTC): The largest cryptocurrency by market value recently rallied 1.7% to the $17,400 level. BTC was trading at $17,488 in the last 24 hours, hitting a nearly four-week high. However, the big traders, often called "whales", are stay out of the bitcoin market due to the low liquidity of the bitcoin market. Stocks closed as traders processed Tuesday's comment from Federal Reserve Governor Michelle Bowman about waiting more interest rate hikes to lower inflation. The Nasdaq technology composite closed up 1.0%, while the S&P 500 and Dow Jones Industrial Average (DJIA) rose 0.7% and 0.5%, respectively.
ether (ETH): The second largest cryptocurrency recently rose 1.5% to $1,340. Ether's recent price jump also drove the asset to a nearly four-week high.
Binance-peg BUSD stablecoin: Binance acknowledged that its stablecoin BUSD Binance-peg has not always been fully backed with reservesbut he said that now the problem is fixed, according to a Bloomberg report. The token was undercollateralized at times in 2020 and 2021, Bloomberg reported, citing an analysis by Jonathan Reiter of blockchain analytics firm ChainArgos.
853.03
+13.2 โฒ 1.6%
$17,486
+312.5 โฒ 1.8%
$1,342
+24.1 โฒ 1.8%
S&P 500 daily close
3,919.25
+27.2 โฒ 0.7%
Prayed
$1,882
+8.9 โฒ 0.5%
Treasury Yield 10 Years
3.62%
โฒ 0.1
BTC/ETH prices for CoinDesk Indices; gold is the COMEX spot price. Prices starting at 4 pm ET
Analysis of the crypto market: The first signs of increased volatility may be encroaching on Bitcoin and Ether
By Glenn Williams Jr.
The knee-jerk reaction to an upper limit violation is often optimistic. Viewing any indicator in isolation is risky at best and reckless at worst.
A look back at when BTC breached an upper limit on December 13 shows a 2% decline in prices 14 days later. ETH's previous default on Oct. 29 sent prices tumbling 22% after 14 days.
Bullish investors will note that prices are entering a range of previous low activity. These "low volume nodes" generally represent areas where prices are moving quickly, looking for the next area of โโprice agreement.
For bitcoin, that area currently exists 9% higher, near the $19,000 range. For ether, the next high volume node area is about 16% higher, near $1,590.
