Coinbase exchange is facing financial pressure on two fronts. At one end, the crypto exchange is facing issues with decreasing number of cryptocurrency active accounts and trading volumes.
On the other hand, the stock prices of Coinbase have taken a critical hit according to its Q1 report. Emilie Choi, Chief Operating Officer at Coinbase recently issued an urgent amended management plan to deal with the situation.
The new management charter included the decision to stop the recruitment activities for a while. Coinbase is the largest cryptocurrency exchange operating out of the United States.
On the other hand, Coinbase is also a regulated and public listed crypto organization that has been expanding in local and international markets continuously since last year.
Coinbase COO’s Open Letter to Employees
Coinbase COO, Emilie Choi recently addressed the concerned employees of the company in an open letter. She claimed that the continuous decline of trading volumes is one of the main reasons for taking preventive measures such as hiring new employees at the firm. She further explained that the company is still working on its plans to expand three times in size.
Choi also said in a recent tweet that keeping in view the profit projections of the organization it is crucial that Coinbase take immediate action to tie any loose ends and enable the firm to sail through these trying times without any hiccups.
Choi’s tweet suggests that Coinbase sustained a loss of $420 million and COIN dropped to 75% lows on a YTD basis.
Coinbase management is addressing the issues head-on present among its employees and shareholders. The company has taken immediate action to patch the loose ends and take all the stakeholders in the loop with a renewed action plan.
The company claimed in a recent statement that it is determined to involve its new hires and ensure that the new blood in the organization can contribute to the best of their abilities.
Google Finance report suggests that the NASDAQ equity product is trading for $61.70 per unit. Meanwhile, Coinbase shares are down 80% from their $357 ATH. At the same time, the tech stocks are currently facing some pressure from the market across the board keeping in view the inflation, interest hike policies of the Federal Reserve, and recession predictions by American economists.