Tough time is coming near for the crypto sphere.
It is rational to assume that what industry sources call “crypto winter” will continue for several more weeks, judging by the recent decisions announced by the big names in the sector.
The last episode of “crypto winter” lasted between 2018 and fall in 2020 before prices rebounded in 2021.
Coinbase (COIN) , the leading American digital currency trading platforms, has just announced new cost-saving measures. These include a suspension of hiring. Worse, the firm will announce cancelation of certain job offers made to candidates.
“In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers,” L.J Brock, chief people officer, said in a blog post on June 2.
“It’s become evident that we need to take more stringent measures to slow our headcount growth,” Brock added. “Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation.”
Roles that are related to security and compliance are not affected by the extended hiring pause, the company said.
As for the accepted job offers cancellation, Coinbase said this will apply to people who have not started working yet.
“We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways. If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side,” Brock concluded.
Linked to fears of a recession in the economy, these fears have initiated many investors to liquidate risky assets, such as cryptocurrencies.