Cryptocurrency

Coinbase Slashes Another 950 Jobs in Latest Crypto Winter Cutbacks

Joining SuperRare and others who have attributed the cuts to the “aggressive growth” seen from the lasting effects of last year’s market decline.

Cryptocurrency

Coinbase Slashes Another 950 Jobs in Latest Crypto Winter Cutbacks

Joining SuperRare and others who have attributed the cuts to the “aggressive growth” seen from the lasting effects of last year’s market decline.

On Tuesday, January 10, Coinbase announced in a blog post that it would also be cutting about 950 jobs (1/5 of its workforce), having previously reduced 18% of its workforce back in June 2022. 

Its recent decision, according to CEO Brian Armstrong, will make room for approximately $149 million USD – $163 million USD in new expenses for Q1 in its efforts to bring its operating expenses down by 25% come March.

Armstrong told CNBC that the FTX collapse and its ongoing effects has “created a black eye for the industry,” explaining that there will most likely be more “shoes to drop” in the coming year.

However, Coinbase isn’t the only one who has had to make tough employment decisions as a result of the crypto winter we experienced over the past year. 

Last week, leading NFT marketplace, SuperRare, announced that it had to “course correct” and reduce its staff by 30 percent.

“During the recent bull run, we grew in tandem with the market. In recent months, it’s become clear that this aggressive growth was unsustainable: we over-hired, and I take full ownership of this mistake,” SuperRare co-founder and CEO John Crain posted to Twitter. 

“To correct course, we’ve made the difficult decision to rightsize our team, ensuring that SuperRare Labs will be able to continue serving our community of artists, collectors, and curators while remaining the destination for the best cryptoart in the world,” his statement continued.

A spokesperson for SuperRare also revealed to ARTnews that 20 people would be let go. 

Last year, the marketplace saw a dive in its sales volume, after experiencing a fairly large spectrum of sales in 2021, with a range of $10 million USD to $30 million USD in sales per month, according to data provided by Dune Analytics.

In November, SuperRare debuted its “Genesis” RarePass, a subscription-like service that will allow for RarePass holders to receive curated crypto art from a number of prominent artists featured on the platform – all within a single transaction. 

Each artist, according to SuperRare Labs COO Kyle Olney, will create a series of 250 unique pieces of art for RarePass holders. 

Over the course of one year, RarePass holders are told that they will receive an airdrop once a month into their crypto wallets from 12 NFT artists, including XCOPY, Pindar Van Arman, Other World, Coldie, and others. 

The company says that its first 250 RarePasses sold out after generating a collective $4.5 million USD. 

Crypto lender BlockFi also announced in June that it needed to reduce its staff by 20 percent

In July, OpenSea revealed that it also had to slash 20% of its workforce (of its then 275 person staff) as another symptom from the crypto winter, citing that it needed to better manage its costs during the bull market. 

In other news, the U.S. DOJ is contesting Robinhood shares linked to SBF that it feels should fall outside of bankruptcy proceedings.

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