Coinbase, What It Is?

Coinbase, has declared its decision of slashing jobs to the tune of 18% apparently on the pretext that it had overhired the staff.

Coinbase, What It Is?
Image Source: Screengrab from Youtube/Coinbase

Ever since the mining of first Bitcoin by Satoshi Nakamoto first mined Bitcoin’ in 2009, cryptocurrency has become a trend with the modern day world. As a result thousands of cryptocurrencies have surfaced in the market in the last decade. In the current downturn of the crypto markets, it becomes all the more necessary to understand how the crypto currency trade goes on.

The Crypto Exchanges facilitate the trading of Crypto assets and cryptocurrencies and are dotted everywhere in the world. The need of an exchange was never more felt than today with multifarious crypto coins and assets. We have earlier presented a general description of Crypto Exchange here. Subsequently, we talked about Binance, leading crypto exchange here.

As a part of our educational write-ups, let us know something more about Coinbase.

Coinbase Exchange, a subsidiary of Coinbase Global, Inc., is an America based company, which is now a popular name in more than 100 countries was established by Brian Armstrong and Fred Ehsram.

Coinbase Founder Brian Armstrong. Image source: Screengrab from Youtube/Coinbase

Though started in 2012, it is now one of the most popular and secure exchange offering a complete user friendly platform. It is a centralized exchange, which means that Coinbase keeps a tab on all your transactions. Initially it had its headquarters in California. Surprisingly, in 2020 Coinbase decided to execute all its working without any physical headquarters and now all its employees work from distance. In terms of trading volume, It is the largest crypto exchange in US and next to Binance (the biggest Crypto Exchange) in the world.

Coinbase facilitates trade in more than 100 currencies with a transaction Fees of 0.04% to 0.50% depending upon the purchase amount involved.

So far Coinbase doesn’t show any history of fraudulent activities. It has neither invited any controversies nor any regulatory disputes. It is gaining traction of the tech savvy investors due to its backing by Coinbase Pro version which assists the investors to compare the available choices with the help of charts and indicators at no additional cost.

It comes with a facility of crypto wallet for its investors which supports more than 4000 digital assets but the only drawback to this is that even the private key is not controlled by the investors, rather it’s retained by Coinbase itself.
In March 2021, Coinbase opened about its plan of expansion of business in India with a physical infrastructure in Hyderabad. In April 2021, Coinbase made a place in NASDAQ through $86 billion direct stock listing and is now a public company by the name of NASDAQ: COIN

Inspite of a high fee structure in comparison to its competitors, Coinbase still stands to be the first choice for new crypto investors.

Now, Coinbase, makes admission of potential recession and in order to cut down expenses in the crypto downturn, it has decided to slash its employee strength by 18%. The communication to this effect appeared in the tweets by the company.

As the crypto markets are slipping down on the path of valuation, the impact is translating into not only big loss to crypto investors but on the job market as well. Crypto lending firms like BlockFi Inc. and a leading crypto exchange firm announced job cuts to the extent of about 20%.

Now Coinbase, has declared its decision of slashing jobs to the tune of 18% apparently on the pretext that it had overhired the staff. However, the reason is obvious. Tumbling of crypto markets and scrambling of crypto investors.

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