The effects of the “crypto winter” are rippling across the entire industry, as Coinbase is the latest crypto giant to announce layoffs. The company announced it was laying off 18% of its staff “to ensure [they] stay healthy during this economic downturn .” Compare: Should You Invest in the Metaverse, Crypto or the Stock Market? Live Updates: Inflation Rates, Stimulus and More Economic News In a memo to employees posted on its website, CEO Brian Armstrong said that “the buck stops with me,” explaining that economic conditions are changing rapidly and that “we appear to be entering a recession after a 10+ year economic boom.” On June 14, Bitcoin was at $22,478, down 18% in the past seven days and down 67.5% from its Nov. 10, 2021 all-time high of $69,044, according to CoinGecko. “A recession could lead to another crypto winter, and could last for an extended period. In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment,” he said. But what does it mean for users of the platform? Several industry experts say that while Coinbase’s move was to be expected given the current market conditions, the company is well capitalized. Josh Goodbody, COO at Qredo , told GOBankingRates that the Coinbase news is certainly disappointing and it shows just how rough the last few months have been for the industry. “However, this is not very surprising, as it is subject to the scrutiny of the public markets that expect the company to react swiftly,” he said. “To be clear, the organization is very well capitalized, so funds are safe with Coinbase. The company has saved a tremendous amount of cash during the previous bull run to prepare for a moment like this. That said, with crypto in general, our view is that it is always better to self-custody your assets — ‘not your keys, not your coins’. If you have concerns about handing over control of your Bitcoin to a third party, it’s a good time to research self-custody options for absolute peace of mind.” Coinbase’s Armstrong said in the post that managing costs was critical in down markets, and while Coinbase has survived through four major crypto winters, “down markets are challenging to navigate and require a […]

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