Crypto exchange Coinbase to reduce 18% workforce

By Ovunc Kutlu

ANKARA (AA) - The US-based cryptocurrency exchange platform Coinbase Global announced on Tuesday that it will reduce the size of its workforce by 18% due to turmoil in the markets.

"We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period," Coinbase CEO and Co-founder Brian Armstrong said in a statement.

"In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment," he added.

Armstrong noted that Coinbase survived through four major crypto winters, but stressed that "down markets are challenging to navigate and require a different mindset."

He said the layoff decision is a result of the need to manage expenses and increase efficiency.

Coinbase saw its stock price falling 5.5% to $49.16 per share on the Nasdaq in pre-market hours.

Earlier, the price of Bitcoin plummeted to $20,846, its lowest level in 18 months, as the sell-off continues in cryptocurrency and global equity markets with fears of recession stemming from the Federal Reserve's rate hikes.