Coinbase and Gemini Cutting Losses

On the same day, two prominent cryptocurrency exchanges have announced that they are now forced to cut losses, due to the concerning global situation in the world of cryptocurrency. Namely, since November last year, the global crypto market cap shrank from $2.9 trillion to $1.2 billion today. This is attributed to economic and political factors, such as the high level of inflation and the ongoing conflict in Ukraine.

Coinbase, the world’s third largest crypto exchange, won’t be hiring new employees for the time being. The company will also backfill all non-essential positions that were yet to be filled, as well as pull out of the arrangement with those employees who have accepted a job at the company, but have not started to work yet.

In other words, Coinbase will focus only on essential positions related to security and the company’s core mission goals. This comes after a reported $430 million loss for Coinbase in the Q1 this year.

Similarly, the world’s ninth largest exchange, Gemini, was forced to lay off 10% of its workforce. At the time being, Gemini will also focus predominantly on achieving its core goals. The company has closed all of its physical offices, with employees working exclusively from home.