Crypto Firms Shake As Prices Crash - Reuters

Crypto Firms Shake As Prices Crash – Reuters



For months, critics have wondered how Celsius could maintain such high returns without jeopardizing its depositors’ funds with risky investments. The company has caught the eye of several state regulators. Ultimately, a drop in crypto prices seemed to put the company under more pressure than it could handle.

With Bitcoin’s price plummeting, Celsius announced on Sunday that it was freezing withdrawals “due to extreme market conditions.” The company did not respond to a request for comment.

Market instability has also triggered a crisis at Coinbase, the largest US crypto exchange. Between the end of 2021 and the end of March, Coinbase lost 2.2 million active customers, or 19% of its total, as crypto prices fell. The company’s net revenue in the first three months of the year fell 27% from a year earlier to $1.2 billion. Its share price has fallen 84% since its IPO last year.

This month, Coinbase announced that it would rescind job postings and extend the hiring freeze to combat the economic downturn. On Tuesday, he announced he would cut about 1,100 workers.

Brian Armstrong, chief executive of Coinbase, informed employees of the layoffs in a memo Tuesday morning, saying the company “grew too quickly” as crypto products became popular.

“It is now clear to me that we have over-hired,” he wrote. A Coinbase spokesperson declined to comment.

“It’s been growth at all costs over the past few years,” said Ryan Coyne, who covers crypto companies and financial technology at the Mizuho Group. “It is now focused on profitable growth. »

Leave a Comment

Your email address will not be published.