Coinbase faces a class-action lawsuit over stablecoins depegging-min

The cryptocurrency market has lost billions of dollars over the past few weeks following massive selloffs. Some exchanges such as Coinbase, Gemini, and CryptoCom have announced they are laying off staff to cope with the ongoing recession.

Coinbase lays off 18% of employees

Coinbase is one of the best Bitcoin and altcoin exchanges in the United States. The company underwent a public listing on the NASDAQ early last year. Despite its vast user base and expansion to other countries, Coinbase has become one of the worst-hit exchanges in the ongoing recession.

The CEO of Coinbase, Brian Armstrong, said that the company would lay off 18% of its employees. This equates to around 1100 people. The exchange has already fired 8% of its staff in India. Armstrong noted that laying off employees would allow the exchange to “stay healthy during this economic downturn.”

Armstrong also published a blog post saying that he was in discussions with his management team over the past month regarding laying off employees. He noted that this decision was caused by the current economic conditions, the need to cut costs, and the exchange growing too quickly.

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In May, the company announced that it would no longer expand its workforce as planned because of the increased volatility. The company also recently announced that its hiring freeze was still in place and would rescind the offers of people who had not started working.

The crypto market is not the only one affected by the ongoing recession across financial markets. Netflix also announced plans to lay off employees to cope with the negative economic climate.

Coinbase stocks plunge amid increased crypto volatility

Coinbase stocks have been on a downtrend over the past year. The shares took a massive hit in Q1 2022 after the exchange reported a net loss of $430 million. The financial report also spooked users on the platform.

When Coinbase went public last year, the exchange’s share prices hit the $350 mark. However, these shares have sharply declined, with the shares trading at around $51 at the time of writing. The company’s market cap has also dropped to around $11.37 billion.

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