Coinbase, the third-largest cryptocurrency exchange by volume, changed its plan to recruit new employees in the face of the market downturn "As we enter this year, we originally planned to triple the size of the company. Given the current market conditions, we think it prudent to slow down recruitment and reassess our personnel needs in accordance with our top priority business objectives," Emilie Choi, President and chief operating officer of coinbase, wrote on the company's website today.
Choi pointed out that the growth of the number of employees is a key element in the company's financial model. Slowing the recruitment speed is very important to ensure that coinbase can meet the profit guidelines it sets for investors.
This news came at a time when the cryptocurrency market was hit more widely, which was catalyzed by the uncertainty of the whole stock market and the recent collapse of Terra ust stable currency.
Compared with the IPO price, coinbase's shares fell nearly 80% today, but it is worth noting that since the beginning of this year, the company's performance has been affected by the decline in cryptocurrency trading volume. Most of the company's revenue depends on trading activities, while coinbase reported a loss of $430 million in the first quarter of 2022.
Coinbase also sparked controversy last week over a disclosure in its quarterly report that shareholders could lose their funds deposited with the exchange if the exchange goes bankrupt. CEO Brian Armstrong later clarified on twitter, assuring users that coinbase "has no risk of bankruptcy", but added: "it is possible, but unlikely, that the court will decide to treat the customer's assets as part of the company in the bankruptcy proceedings, which will harm consumers."