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Coinbase cuts staff by a further 20%
- imcreativhner 4y ago[dead]
- Stan899 4y ago[dead]
- shawabawa3 4y agoSorry a slight error in the title. Operating costs reduced by 25%, but it's actually roughly a 20% reduction in workforce (950 employees out of ~4700)
- Stratoscope 4y agoYou should be able to edit the title if you do it soon.
- shawabawa3 4y agoThanks, just edited
- pifm_guy 4y agoCoinbase has 4700 employees!?! Like a team of 5 software engineers, and a customer support team of 10, and 1 boss ought to cover it...
- consumer451 4y agoDoes that cover legal/regulatory/compliance?
- nicky0 4y agoI guess they need the other 4684 employees for legal and compliance.
- paulcole 4y agoOf course not. HN Headcount Guy™ sincerely believes anything that isn’t engineering (and perhaps occasionally a single support person who also delivers the catered lunches and does the marketing “work”) doesn’t exist.
- code_runner 4y agoObviously crypto companies can get by without any real regulatory considerations for a while…
- consumer451 4y agoI believe Coinbase is the exception here.
- subradios 4y agoCoinbase is a double exception, they didn't just ask for regulatory approval for their lending product, they asked for permission to file the application. Can't wait for the next round of crypto hype, excited to see mew use cases along with new scams.
- mritchie712 4y agosupport team of 10? they have 100 million users and sell a not-so-simple product to consumers who often don't understand what they're buying. https://www.businessofapps.com/data/coinbase-statistics/ https://www.businessofapps.com/data/coinbase-statistics/
- VLM 4y agobusinessofapps.com claims they only do 8M transactions per month, and have/had 4500 employees, so 8M transactions / 4.5K employees / 20 working days/month that's 88 transactions to post per day. They don't need datacenters, quill pens and paper accounting could handle that 200 years ago with about 3 hours work per day. Generally supermarket cashiers can do somewhat less than 30 transactions per hour, so I think its justified they should be able to do all the accounting manually in three hours. The numbers do look a bit odd.
- mritchie712 4y agoYeah, the right number is probably somewhere between 10 and 4500.
- nfRfqX5n 4y agothey run an exchange that is open 24/7. 5 engineers couldn't even handle the operational load.
- finolex1 4y agoIf you can build a coinbase equivalent with 16 people, the real question to ask is why hasn't anybody yet.
- VLM 4y agoI could open a "full service" gas station with dudes to fill the tank and wipe the windshield and upsell services. It varies by state, but nobody put full service gas stations out of business where I live. The market wiped them out; just can't run full service, doesn't mean the workers didn't sweat enough or the market wasn't competitive enough. People won't pay what it costs to run, so they don't run that anymore. Wash your own windshield and pump your own gas. The other problem is its a form of sophistry to react to "the absolute numbers are awful" with a prayer to the efficient market hypothesis like "why hasn't a more successful competitor arisen". That deflects from the original question in a sophistry manner, not answers it. Sure, I'm a believer too, but can't answer a technical question with a prayer. The original question stands unanswered, why are the absolute numbers so utterly awful? Note I'm a happy customer, it would be nice for them not to go out of business, but with those numbers...
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- deleted 4y ago[deleted]
- shp0ngle 4y agoFirst I was thinking, "hey maybe the recent downturn in crypto will weed out the most obvious nonsense" But now I see #1 story on Coindesk "Shiba Inu-Themed BONK Tokens Are Yielding Nearly 1,000%" So I guess we are not there yet
- senttoschool 4y agoIt's a pump and dump with most of the tokens centralized in top 20 wallets. Crypto needs to die.
- Buttons840 4y agoI agree, but 1% of society holds more wealth than the bottom 50%. To a passing observer of crypto, they see that a few have extreme amounts of wealth, just like every other currency, and think everything seems normal.
- robertlagrant 4y agoThey don't see the difference in mechanisms. Getting rich through pump and dump vs getting rich through making or doing something people find valuable.
- Lalabadie 4y agoI think we're past believing that our top .1% is bringing value that's worth billions of times more than the rest of the population. They're all hoarding wealth and offloading risk on others, it's just that in comparison, the crypto-rich are not (yet?) a social class with an army of lobbyists on its payroll.
- 988747 4y ago> I think we're past believing that our top .1% is bringing value that's worth billions of times more than the rest of the population. Fortunately, we do not have to rely on our beliefs here, we have an objective measure, which we call "money". If someone starts a company in their garage, and a decade later that company is worth few billions of dollars then that's the value this person brought to society - because people willingly paid them those billions of dollars for their product/service. Of course the whole logic breaks down with purely speculative financial assets such as crypto.
- drstewart 4y ago>accountability rests with me as the CEO There it is. Rings incredibly hollow when the same line was trotted out just a few months ago with zero impact or meaning behind the statement, given it clearly didn't change anything.
- blitzar 4y ago> accountability rests with me as the CEO "As the accountability rests with me, I will be taking a 25% cut on my $60 million bonus this year"
- cj 4y agoFor others reading: the $60 million number is his comp from 2020, $57 million in the form of stock options. I doubt he’s getting anything close to that in 2023.
- blitzar 4y agoI hope he took puts for the options.
- imcreativhner 4y ago[dead]
- senttoschool 4y agoYep. Also, Coinbase sells unregistered securities.
- m00dy 4y agoThank you Gary.
- jesuscript 4y agoUnless he resigns along with the people he lets go, there is no accountability.
- jesuscript 4y agoThey literally had people with 1-2 years of experience conducting interviews last I remember. They were on an unhinged hiring spree before they ipo’d, so this was coming no matter what.
- iLoveOncall 4y ago> They literally had people with 1-2 years of experience conducting interviews last I remember. What's the problem with that?
- jesuscript 4y agoReally?
- deleted 4y ago[deleted]
- kasey_junk 4y agoIt’s indicative of a very inexperienced staff or one that is desperate for interviewers, presumably because they are binge hiring. There are places that go out of their way to get very junior people interviewing early on purpose but in those cases there is usually someone more senior also involved. For most places though it means they were throwing whoever they could find at the interviews.
- iLoveOncall 4y agoWhy would you need someone with decades of experience to hire an intern or a new grad? It's customary for a lot of companies to have an interviewer which is above or _at_ the level that you are recruiting. Therefore someone with a year or two of experience is perfectly able to hire an intern or someone that will be hired at the same level as them. Looking at Amazon for example, "Hire and Develop the Best" is one of the leadership principles, and you CANNOT be promoted if you don't conduct interviews.
- 4y ago
- brunorsini 4y agoMore precisely, this is what they actually did: "Therefore, I've made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people (..) (1) Comprising Sales and Marketing Expenses, Technology and Development + General & Administrative Expenses, including stock-based compensation and excluding restructuring expenses and Other operating expenses" (..) In futher news, highly recommend Ben Thompson's recent interview with Brian Armstrong.
- irl_chad 4y ago[flagged]
- guntherhermann 4y agoThat seems needlessly ideological. If the engineer can do what you want of them what does it matter what their employment history is?
- irl_chad 4y agoA lot is being demonstrated with it being on your resume: 1) enjoying the technical challenges of crypto is to me like a guilty pleasure. So do I, but I don’t tell the world about it (outside of this HN comment). 2) such a high % of the people involved in crypto are doing something shady or illegal. Personally I would bet that only a slim slim slim monitory of US crypto holders pay their taxes accurately. For any top security clearance jobs in the US, you can’t have any major outstanding debts, because they could be used as leverage against you. In the same way, hiring a cryptobro looks like an unnecessary risk to me. 3) they probably can’t do the job I need them to do. For example, any front end change to our sales funnel requires a sign off from compliance. Can I trust a cryptobro to work in an environment with stricter rules & compliance requirements? Not really.
- monkey_monkey 4y agoSure, but then again I wouldn't work for a company whose CEO thinks "irl_chad" is a cool name, and talks about being seen in Kyiv in "designer and an iced out Rolex"
- irl_chad 4y agoWell, that was pre war. I was pretty nouveau riche. Then I almost got blown up in combat, and my tastes changed.
- lawgimenez 4y agoAnd who doesn't eat trash food like McDonalds. I just had McDonalds, what a coincidence.
- EZ-E 4y agoWhile 20% is a lot - how far back does this bring the headcount? A lot of these companies have what seem to be large reductions in staff but are more of a correction of insane hiring sprees.
- alex_suzuki 4y agoThere’s a mention of 950 employees in TFA.
- mupuff1234 4y agoThe stock jumped 15% yesterday before this was public information. Coincidence? I think not.
- eqmvii 4y agoa lot of tech stocks jumped yesterday, and crypto stocks are extremely volatile.
- deleted 4y ago[deleted]
- mupuff1234 4y agoAt closing most tech stocks only had mild gains, even the more volatile ones afaict.
- cactacea 4y agoIt was up on this report https://www.coindesk.com/markets/2023/01/09/jefferies-initiates-coverage-of-crypto-exchange-coinbase-with-hold-rating/ https://www.coindesk.com/markets/2023/01/09/jefferies-initia...
- SunlightEdge 4y agoI lost a little bit of money investing in crypto on Coinbase (I put about £500 in which shrank to £200 - over the course of past 2 years and for past year I mostly have just had money in sterling - the market looked terrible) I finally decided yesterday to cash out of coinbase yesterday - they charged me £3 to withdraw my money!! In the scheme of things I didn't lose that much money - not really. But personally I can't see myself getting back in when Bitcoin goes below 10,000 dollars (which I believe it will in 2023). I think Coinbase share price is heading to junk status. No wonder the employees were selling all their shares when it went public!
- lnxg33k1 4y agoI bought some bitc on coinbase in 2015/2016? Around the time that it spiked to 30k and gained some money, but even back then I parted ways with Coinbase anyway, it seemed like a scam made just for them to earn money without risks, like even their quote of a BTC is higher price when you buy and much lower when you sell, and that for me was the breaking point
- Sas_cedric 4y ago[flagged]
- pifm_guy 4y agoAll the whales and insiders thank you for your donation of £303 to their net worth.
- SunlightEdge 4y agoLol. I probably shouldn't but I find this quite funny.
- Sas_cedric 4y ago[flagged]
- 4ggr0 4y ago
- imcreativhner 4y agohnmods produce amazing community that definitly isnt shit hole we just do things differnetly here upper crust of socialm mediaz
- ushakov 4y ago> I've made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people read that again you're not an individual to corporations, just an expendable can only imagine the joy shareholders get out of "cutting expenses", they get richer and you peasants lose jobs
- swyx 4y agowrong: expenses are on income statements carry on
- deleted 4y ago[deleted]
- MattPalmer1086 4y agoWhy would you expect a corporation to treat you as an "individual"? What would that even mean? You think executives should let a company go bust, rather than shedding staff when times aren't good?
- ergonaught 4y agoI doubt that it's news to anyone that staff are an expense.
- deleted 4y ago[deleted]
- KrakenEng 4y agoEmployees got 14 weeks severance. They didn't have to do that.
- sudosysgen 4y agoThis is not true. There are State and Federal restrictions on mass layoffs, which generally require a few months of notice. Giving severance is understood to count as notice. In any case you'd get the money, and you probably wouldn't be useful anyways.
- SilverBirch 4y agoCoinbase is a weird company, because it's got such an obvious comparable: CME Group. CME Group has about 3500 employees, did 1.2bn in revenue last quarter with 680m net income. Then you have coinbase now trimmming to about the same number 3500, 590m revenue and a net income loss of 550m. That's right, as far as I can see, Coinbase loses $1 for every $1 of revenue. Firstly, I don't see how Coinbase needs as many people as CME. They're meant to be a disruptive start up they should be lean. Secondly, how the hell do they get those unit economics to work? It should be a trivial job, right. People pay you to trade, so how are they losing so much money!? Well, I guess hiring 4,500 people... I think the idea at this point that Coinbase can get their cost structure down to reasonable numbers making them profitable at lower revenue levels is challenging. It's very hard to put that genie back in the bottle.
- rvnx 4y agoAbout profit, in their SEC fillings, seems like their long position in BTC isn't going well...
- jesuscript 4y agoMy best guess is that raising funding helps raise the valuation, especially as they approach IPO. So raise money for the sake of raising the valuation. You don’t really need the money, but you got it. What are you going to do with it to appease the investors? Well you gotta act like you are doing something with it, especially something that shows growth. Hire more. Hire more because we imagine more. Keep imagining until imagining doesn’t work anymore. Then fire, and say sorry. Hopefully you sold enough equity at the ridiculous ipo price. Sorry, but not sorry.
- bfeynman 4y agoclassic vc growth story, almost a fairy tale.
- rvz 4y agoThis is no different to other tech companies and startups that have over hired during the low interest hype and have aggressively raised money. It is essentially the VC hype cycle and are meant to dump their holdings on retail once the stock is publicly listed. We're all just see how tech startups and other companies are getting slaughtered over market conditions and NOW need to cut costs, spend less, hire less and turn a profit rather than continued losses. The era of "Lose money for decades just like Amazon did and so can we" is over.
- saos 4y agoWow, so whats the total now? I guess all companies are making cuts before new fiscal year? Survive this month and maybe you're ok for time being?
- epolanski 4y agoedit: wrong thread
- Aissen 4y agoYou probably wanted to post this on https://news.ycombinator.com/item?id=34321937 https://news.ycombinator.com/item?id=34321937 ?
- dwighttk 4y agoAnyone else notice that Coinbase changed its price trend in your assets from “beginning of time period to now” to “lowest point to now”? I haven’t been able to find a view that shows a downward trend since…
- dwighttk 4y agoThis morning it shows the total loss (or gain) for all time in every view.
- TheNorthman 4y agothat is extremely toxic and misleading. how the fuck is that allowed?
- WFHRenaissance 4y agoOkay Mr Reddit, no need for profanity. Parent comment is literally BSing. This isn't even happening on either of the mobile apps.
- dwighttk 4y agoThat is what I’m seeing.
- vageli 4y agoCan you post a screenshot? The charts for me go back to "all time".
- dwighttk 4y agoNo, but right now my current balance is X The trend says it is up about .5X in the past year Right below that is the peak 1year ago which is about 3X Trend should be -2X Going to the 1D view it looks like it may be fixed, but the other views are showing bad numbers.
- deleted 4y ago
- benreesman 4y agoI try to keep my calm but it’s a stretch on these topics. There is nothing ethically superior about any financial manipulation. @sama just raised a multi-billion round on OpenAI. “Open” “AI”. Loopt sold to Greenpoint with thumbs on the scales from both pg and Conway, which is why he’s in a position to do that. Parsing the details about how wealthy people with the right parents extract wealth is an exercise in parsing minutia. The chosen get richer. The militant guardians of freedom fight for Drepper’s ideology (he works for Goldman Sachs). And I’m pretty comfortable with all this: it’s the same as it always was. Most crypto is a fucking scam. But it’s the same amount of cynical and worse connected than YC.
- deleted 4y ago[deleted]
- corluxrycleng 4y ago[dead]
- T3RMINATED 4y ago[dead]
- TekMol 4y agoIt is strange, that so far Coinbase has not took any steps towards supporting the Lightning Network. If the Coinbase app supported it, that would allow all of the Coinbase users to do real decentralized micropayments. Any theories, why they don't do that?
- danrocks 4y agoBecause the vast majority of crypto users only see it as a speculative vehicle and do not care about decentralized payments, I would guess.
- TekMol 4y agoBut giving the tens of millions of Coinbase users a way to do cheap and fast microtransactions could change that. "Oh, you also have a lightning app? Cool, I'll send you the money this way."
- yao420 4y agoI used to work at Coinbase. The thing is no one is actually using it for transactions of any type. The vast majority of users buy a token and let it sit until they can make a profit. The volume of transactions to other accounts was in the single percentage points.
- deleted 4y ago[deleted]
- tqi 4y agoI think for most folks, this is akin to paying for everyday expenses with fractions of your stock portfolio.
- deleted 4y ago[deleted]
- nextstep 4y agoBecause the lightning network is garbage?
- tom_walters 4y agoI think any company exploring ways to improve the financial system should be given plenty of space to do so, but I think the fundamental issue facing Coinbase, and all other crypto-based firms is: when will we see mainstream adoption of crypto as something other than asset speculation? Or, is speculation the only use-case for crypto? Sure we've had example use-cases for crypto as a value store and exchange medium, but outside the bleeding-edge of technology, and away from the VC fever dream (let alone con-artist central), where does crypto fit into society? There are major incumbent forces all the way up to government that are keen to control the rise of this technology so it's clearly not an easy task, but for the likes of Coinbase to survive I think we need to see real value in using the things you actually trade on their exchange. Unfortunately right now it seems that Coinbase is a company predicated on the assumption that “crypto is going to become the main way to exchange value at some point in the future”. Companies powered by hype and VC speculation invariably collapse as markets move on, so if I were investing in them I'd be really keen to have them allocate the majority of their resources at pushing crypto adoption into non-investment-based use-cases, which is to say, banks having large crypto teams is much less important than average people actively using crypto for goods and services (if that's to be the dominant use-case for crypto.)
- juujian 4y agoDon't forget that it's not only a "when we will see" but also a "whether we will see". Changes the economics significantly for investors.
- deleted 4y ago[deleted]
- nxmnxm99 4y agoWith most technologies, I find the heuristic of "how will this technology help improve your average suburban consumer's life, or those serving them" helpful. Internet? Great. Smartphones? Yep. Electric Vehicles? Kind of. Crypto has never had a real answer to that question. The opportunities of crypto are things like you owning your money instead of the bank, fast transaction speeds and anonymity - nobody but a tiny percentage of people give a crap about any of this. Certainly not enough to supplant the most prevalent piece of infrastructure in modern society, the fiat.
- odiroot 4y agoThe stock is up 15% pre-market. Maybe if they cut 90% staff, they'd go back to IPO levels.
- deleted 4y ago[deleted]
- LAMike 4y agoHopefully this pivot allows them to realize promoting altcoins like Doge will not take them very far, and go deeper on the Lightning Network integration to enable their customers to move funds and use apps made on L2/Nostr
- lucasfcosta 4y agoI agree with this analysis. So much of what I see in crypto is demand generation which just makes “churn” worse when folks realize they’ve invested in the wrong assets due to misleading communication.
- alanlammiman 4y ago[flagged]
- mikelovenotwar 4y ago> We're building the mobile-native web3 marketplace, starting with NFTs. https://web3isgoinggreat.com/ https://web3isgoinggreat.com/ Feels like more technology looking for a problem, fortunately for humanity the wide interest in such things seems to be waning.
- arbol 4y agoAnd what do you do that's so noble?
- mikelovenotwar 4y agoI write software used to operate power stations, so that people can power their homes etc. You seem to confuse nobility with utility. Crypto is a solution looking for a problem. The ponzi seems to struggle to maintain the volume required for 'growth'. Thanks for the 'whataboutism' though.
- arbol 4y agoYou'll be familiar with generators then. A technology that also had next to no utility in the 1830s when it was invented, reaching commercial success in the 1870s. During this 40 year period, millions of dollars were spent promoting the field of commercial electricity at a time when the steam engine ruled. > Crypto is a solution looking for a problem I think this is short sighted and time will prove you wrong.
- mikelovenotwar 4y agoThis comment completely fails to take into account the societal and technological changes that occurred during the period, including population growth and all that goes with it, suggesting that money spent promoting a better solution than was presently available is responsible for it's uptake. Do you have any evidence for anything you're saying?
- nfRfqX5n 4y agoI'm curious what coinbase leadership has done to try and innovate in this space. they had this proclaimed vision of democratizing finance but they're just letting people buy and sell crypto.
- akskos 4y agoThere's a Lex Friedman podcast with the CEO of Coinbase. I don't remember exactly what all they talked about but at least there was stuff about wallet innovation.
- esotericimpl 4y ago[dead]
- danrocks 4y ago“ All Coinbase personnel will be given proper notice and terminated. But make no mistake. Though they're the ones leaving, it is I who must remain and bear the heavy burden of their failure.”
- mikelovenotwar 4y ago"...and if you excuse me I'm going to go cry myself to sleep on a pillow filled with fiat cash..."
- FlyingSnake 4y agoThe prophetic scene in question: https://youtu.be/u48vYSLvKNQ?t=1 https://youtu.be/u48vYSLvKNQ?t=1
- waylandsmithers 4y ago..."and as a result I have decided to step down and hand the company over to someone more capable of navigating today's challenges" /s I think we'd all like to imagine a world where company's are run like sea faring ships- the captain gets paid the most to be accountable for the whole operation, and when things go wrong must be the last one off the ship. To the point where any selfish behavior by the captain in an emergency can be criminal. (This is just an analogy, not saying the CEO should actually risk life and limb.) But in reality they are run a lot more like Project Runway. The contestants pour their blood, sweat, and tears into their garments and over the course of the season, and eventually the best of them receives a spread in Vogue and something like a $500,000 contract and some other goodies. The real winner though is always Heidi, who collects her $20M fee regardless of who gets the show's nominal prizes and is awarded an Emmy for executive producing.
- jefftk 4y agoThe emergencies you're talking about in seafaring are situations where people might die. Conventions and rules appropriate for that kind of situation are very different than for lower stakes situations, and I don't think the analogy is very illuminating.
- leoplct 4y agoThere was a time when disruptive startups were small and lean. Now they are overhired. It’s fault of this crazy VC world where you are pushed to grow at all costs. I am bullish on bootstrapped startup for next years.
- deleted 4y ago[deleted]
- jmacd 4y agoCoinbase may or may not be a good company. I have no idea. What I do know is that they have a lot of things working against them: - Money is not cheap anymoore - Their market is collapsing. I don't see how a company makes it through. Even if they navigate the present environment and manage to finance the company through the new few years, they may do so in to an ultimately collapsing market. There is no reason to assume that crypto trading will exist in any meaningful way in the next few years. (It may, sure. You may believe, yes. Are there any clear indicators that it will stabilize and grow? No there are not.)
- wallawe 4y ago> Money is not cheap anymoore This is actually working for them. https://www.coindesk.com/business/2022/11/02/coinbases-interest-income-may-be-bright-spot-amid-challenging-third-quarter/ https://www.coindesk.com/business/2022/11/02/coinbases-inter...
- onlyrealcuzzo 4y agoI'm a huge crypto bear, and even if crypto collapses 99% - it's still a >$10B market, so there will still be people trading it. The sports trading card market is ~$7B - and plenty of people's entire life and income revolves around trading sports cards.
- mikekij 4y agoThe only issue with the comparison of cryptocurrencies and sports trading cards is that trading cards will still provide some utility to the 1% of people trading them. The primary utility of cryptocurrencies is the anticipation of them going up in value. If 99% of people stop using crypto, it loses its utility for the last 1% of users.
- deleted 4y ago[deleted]
- koreanguy 4y ago[dead]
- _hcuq 4y agoThe one thing that surprises me in all this is that the BTC price has stayed at a stable 16k since mid October.
- hardwaresofton 4y agoI don't see this discussed in enough HN threads. Everyone is quick to talk about FTX, Tether being a scam, etc but I rarely hear people discuss how the heck BTC is pegged at $16k this whole time, through it all.
- geerlingguy 4y agoSimple: fraud
- mikeyouse 4y agoRight.. "everyone talking about Tether being a scam" means people are talking about why the price is still at $16k.
- stusmall 4y agoMy theory is that a lot of prices in cryptoworld is set more by "vibes" rather that analysis of value and fundamental utility. You often see crypto prices hitting whole number price floors on the way down. I think it is from traders picking buy order prices by their gut feeling which leads to more whole numbers. BTC fell through a few of these whole number price floors on the way down, this is just the one that finally broke the momentum. If it is going to continue to fall then downward pressure will build up until it overwhelms these buy orders and it will crack down to the next floor. Kind of like the 40k to 30k fall, the 30k to 20k fall or the 20k to 16k fall.
- coffeebeqn 4y agoNot to be glib but what else would it be based on? All the great use cases that all the bankrupt crypto companies were peddling?
- cs702 4y agoDespite numerous wrong turns and silly mistakes, Coinbase is looking more and more as the lonely survivor positioned to dominate crypto trading in the West. The company has lots of cash on hand in excess of corporate debt, almost no short-term corporate debt, customer assets backing all customer deposits, and as far as I can tell from a quick read of the latest quarterly report, a clean balance sheet with no red flags. If the crypto market recovers from the latest crash, which is what has happened after all previous crashes in the past, Coinbase stands to win big.
- charlieyu1 4y agoWe should go fully decentralised for the future, with fiat/crypto done at retail scale. Unfortunately there is a huge lobby of banks and government that want to monitor people spending money to make it happen.
- cableshaft 4y agoThey've already survived two crypto winters as well before this one, so they've already had experience and gotten to see what works and what doesn't, and have structured their company accordingly. I think if any crypto company deserves to survive this crypto winter, they're probably the most deserving.
- smt88 4y agoI doubt their past experience applies. This is far more than a winter.
- danuker 4y agoI agree, this might be a prolonged depression because the interest rates are higher.
- cableshaft 4y agoI didn't literally mean that past crypto winters lasted only as long as a physical winter. Past crypto winters have lasted as much as two years. If this lasts longer than that, sure, it can be considered worse than past ones. Currently we're just barely over a year from bitcoin's all-time-high, though. As the other comment said, we're somewhat in uncharted territory with higher interest rates, but I don't think it will insure a longer winter. It might just keep it from getting quite as high as the ATH for a while, but I think as the rate increases slow down (and especially once they start being cut again) it will start rebounding significantly. Also if that past experience doesn't apply, then it probably doesn't apply for any other non-crypto company that was founded since 2012 (when Coinbase was founded as well). You expecting all of them to go belly up, just because they only existed in the era of low interest rates?
- rubyist5eva 4y agothis scam industry can't collapse fast enough
- throwaway94104 4y agoThey hired thousands of engineers but had the worst SDKs & APIs in crypto-space. That's when I sold.
- jononomo 4y agoThe entire crypto space is going to eventually be worth $0.
- coolspot 4y agoNot the part that caters to illegal markets.
- noelsusman 4y ago>This is the first time we've seen a crypto cycle coincide with a broader economic downturn. Unemployment in the US is currently at its lowest level in 50 years. What economic downturn are they referring to?
- za3faran 4y agoHigh inflation, stock market, etc.
- noelsusman 4y agoNeither of which has caused an economic downturn yet. The economy is doing just fine. Tech companies laying people off because money isn't free anymore is not an economic downturn.
- alfalfasprout 4y agoNot sure what blanket you're hiding under but just because unemployment is low doesn't mean the economy is fine. Many companies are seeing a slowdown thanks to inflationary pressures in consumers. The stock market just tends to drop before earnings consistently drop and recover before earnings consistently recover. High inflation necessitating high interest rates is not a healthy economy.
- harriet1 4y ago[dead]