Coinbase freezes hiring and cancels accepted job offers

Coinbase is pulling back on its recruiting efforts. In a note posted on Coinbase’s site, chief people officer LJ Brock announced that Coinbase is taking a break from hiring new employees and also canceling several job offers already accepted by potential employees, citing “current market conditions and ongoing job prioritization efforts.” .

The exchange comes as the cryptocurrency market continues to trend downwards and drags along with it the so-called real estate stablecoins pegged to fiat currency or commodities. Coinbase began slowing hiring in mid-May to make sure the company was “in the best position to succeed during and after the current downturn,” but the move puts hiring on hold altogether. Brock notes that freezing will also affect refills or employees who are hired to replace workers who leave the company. However, it excludes those hired to fill “security and compliance” roles.

Coinbase is also struggling with a lackluster response to the social NFT market that it launched widely in May. Based on data viewed by Dune Analytics this colorful idiot, Within 19 days of its launch, 4,132 people purchased an NFT on the platform, with gross sales of $875,000, or an average of $46,000 per day. It doesn’t help that NFT sales as a whole fall, as opposed to 225,000 NFT sales in September, and to about 19,000 sales per week at the beginning of May.

It is unclear how many job offers Coinbase has canceled, and the company did not immediately respond. Boundarycomment request. Brock said affected individuals will benefit from Coinbase’s “generous severance policy” and gain access to a talent center with a range of career resources, including interview coaching, resume review and networking opportunities.

The change at Coinbase has put some potential employees in a difficult position. At least two people to be hired by Coinbase say they could lose their OPT (Optional Practical Training) Visa due to the canceled offer. others say they received an email reassuring that they would not lose their newly accepted job due to the company’s slowdown in hiring, but weeks later they received an impersonal email announcing a canceled offer.

“You may have seen Coinbase publish an external blog post this week announcing our intentions to slow hiring so we can re-prioritize our hiring needs over our highest priority business goals,” Coinbase’s first email to new hires states. “First of all, I wanted to let you know that we are still extremely excited about your participation in Coinbase and that we will not withdraw offers from any employee who has received or signed an offer from us.”

Coinbase has strengthened its staff as part of its plan to hire 2,000 employees in 2022, and says it envisions “enormous product opportunities for the future of Web3” at the time. The latest earnings report reveals that Coinbase added 1,218 employees in the first quarter of 2022 alone, bringing its total headcount to 4,948.

“While we have not taken this decision lightly, it is a prudent decision given market conditions,” Brock said in the letter. “We will continue to evaluate all our options to navigate Coinbase responsibly throughout the current cycle.”

Coinbase’s hiring freeze is indicative of cooler conditions for the cryptocurrency market, and so are layoffs at other companies on the blockchain. Cameron and Tyler Winklevoss, the twins behind Gemini cryptocurrency exchange, also announced that they’ve cut 10 percent of staff. The same goes for Rain, a major Middle East-based crypto exchange that has laid off dozens of employees.

Last week, famous short seller Jim Chanos described Coinbase as “extremely overvalued.” Crypto Critics Corner podcast (via Luck) and predicts the stock price will be in the “mid-tens” by the end of this year. Coinbase shares fell 9.7 percent after news of the hiring freeze went public on Friday.

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