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Coinbase could file for bankruptcy
If you are in the crypto world, you probably know Coinbase, one of the most popular wallets and exchanges today. This American company is one of the most important in the entire sector, but it has not been having a good time in recent months.
Currently, the cryptocurrency market has been in a significant decline for a few months. This has caused many people and companies to lose a good amount of money.
Even large companies such as Coinbase are not exempt from this situation. This giant of the world of cryptocurrencies could go bankrupt if the market does not recover soon.
What is Coinbase and what has happened?
This platform for the exchange, purchase and sale of crypto assets is very important. Today, the platform has around 100 million active users and around 250,000 million euros in assets. This makes it one of the heavyweights in the sector along with other companies such as Binance.
Some time ago, the company went public and its entry was very successful. The company was valued at around 80,000 million euros on Wall Street.
However, due to the crisis in the crypto world, the company has begun to falter. Its shares on the stock market have ended up losing 80% of their price, which means that the company is in a delicate situation.
One of the things that rocked the crypto world and consequently Coinbase was the crash of the Luna cryptocurrency. This cryptocurrency lost 96% of its value in just one day. This blew up the crypto world causing thousands of people to lose their money.
The company has been forced to freeze all hiring, in addition to halting its expansion plans this year. However, despite the fact that at first it seemed that it had not been so big, the truth is that it was a lot, but than was believed.
The company has had to take strict measures on its future to try to shovel the situation. Even the contracts that the company had in mind have had to be stopped.
Let us remember that the company obtains benefits from commissions and these commissions are related to the purchase, sale and exchange of cryptocurrencies. However, with the market being the way it is, their profits have been drastically reduced.
Coinbase has had to lay off 18 of its staff
One of the most “drastic” measures and one that has had the greatest impact and rejection is that of a massive dismissal. The company has reported that it has had to reduce its workforce by 18%.
This is a measure that directly affects more than 1,000 people who have lost their jobs due to the current situation. Without a doubt, the company is in one of its worst moments in recent years.
Even in the event that the situation with cryptocurrencies does not end up improving, it is likely that we could see Coinbase end up declaring bankruptcy.