Though we are headed towards summer, the crypto world is mighty frigid. Perhaps a sure sign that crypto markets are suffering is the announcement that Coinbase is pulling back on its hiring efforts. Chief People Officer L.J. Brock announced that Coinbase is putting a pause on hiring new employees, as well as rescinding several job offers already accepted by prospective workers, citing “current market conditions and ongoing business prioritization efforts.”
The season that Crypto finds itself in is called “Crypto Winter.” Cryptocurrencies are already considered a volatile asset class. They’re marked by extreme highs, followed by extreme lows. The most surprising aspect of this crypto winter is the dragging down of not just “alt-coins” but “stable coins” as well.
Coinbase is generally viewed as an on-ramp for crypto, both for users of its services, and new hires looking to start a career in the crypto industry. Coinbase started to slow hiring in mid-May to make sure the company is “best positioned to succeed during and after the current downturn,” but this move halts hiring completely. Brock notes that the freeze will also affect backfills, or the employees hired to replace workers leaving the company. It excludes those hired to fill roles in “security and compliance.”
At the time of this article, it is not known the number of people who have had job offers rescinded. Coinbase hiring freeze is scary for those paying attention. It seems to indicate that something more frigid, or chillier is on the way. Brock says affected individuals will benefit from Coinbase’s “generous severance policy” and will gain access to a talent hub with various career resources, including interview coaching, resume review, and networking opportunities.
Coinbase is not alone. Cameron and Tyler Winklevoss, the twins behind the Gemini cryptocurrency exchange, also announced that they’re cutting 10 percent of staff. The same goes for Rain, a large crypto exchange based in the Middle East, which also laid off dozens of employees. Coinbase’s hiring freeze is directly connected to the technology it depends on, its business might only stabilize when the cryptocurrency market does.