In response to the cryptocurrency market crash, Coinbase has initiated plans to reduce operation costs including pausing hiring and put some other projects on hold.
The crypto exchange platform told employees that its next point of action is to reduce how much it spends on hosting services. Also, it will stop its hiring plans and not try out new projects until further notice.
Even though employees get to keep their jobs, their pay has now included more shares. It is important to note that the company’s shares dropped by more than 75 per cent in 2022.
Among the new projects that it is putting on hold is the business banking idea. In place of trying new things, Coinbase wants to increase revenue from its existing products like retail and institutional trading products.
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In a Twitter thread, the company’s chief product officer Surojit Chatterjee revealed details of the memo that he sent to staff.
“Discipline and prioritization have always been important values at Coinbase, and it is no surprise that they are now more than ever. I shared that we will be doubling down on high impact products. This includes, but is not limited to, our core retail and institutional trading products, as well as staking.
“I also shared that we will be working to improve efficiencies by seeking improvements in developer productivity.
” Lastly, I called on our teams to: rigorously prioritize core initiatives for highest impact, improve efficiencies, and ensure all our projects are set up for long-term success.
“This does not mean we plan to stop investing in strategic and venture projects. We believe the down market is a great time to build for the longer term. We’re working on foundational web3 efforts and many of which I announced in the recent Permissionless conference.”
Coinbase revenue had fallen by nearly 27 per cent year-over-year per its Q1 2022 report. It also mentioned that trading volume had dropped as well. Since of these calamities befell it before the market crash, it is safe to say that the trading platform was hit very hard.
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