In recent years, Coinbase has established itself as a leading cryptocurrency trading platform, charging a premium fee for its services in exchange for institutional investment opportunities, a user-friendly, easy-to-use platform, and so on.
While trading platforms like Binance and Kraken depend more heavily on staking and other sources of income to make a profit, Coinbase is famous for depending on transaction fees to stay in business.
The disadvantage of this approach is that when things are tough, HODLers prefer to double down, while many day traders grow more suspicious of market circumstances, content to wait for better chances.
As a result of the mostly negative market in Q1 2022, Coinbase’s publicly listed stock, COIN, fell to an all-time low.
Coinbase is still in good shape overall. Despite foreboding wording in the business’s latest 10-Q disclosure filing, Coinbase CEO Brian Armstrong indicated that the company is not on the brink of bankruptcy and assured investors that their funds were safe. Although the exchange seems to be fully capable of surviving the present storm, some planned operations have to be postponed.
In a recent memo, Emilie Choi, Coinbase’s President and COO, revealed temporary adjustments in the company’s employment policies and growth goals.
Choi went on to say that Coinbase would be slowing down its recruiting efforts for the time being, after highlighting the significance of continual growth for the firm.
Despite plans to increase the company’s size by 2021, the present scenario has prompted Coinbase’s leadership to redirect resources intended for growth to “higher-priority business initiatives.”
