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Crypto: Coinbase and the Winklevoss Twins Confirm Tough Times Are Ahead

The cryptocurrency market has been struggling since the beginning of the year.
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The tough time that the crypto sphere is going through is not about to go away.

Judging by the recent decisions announced by the big names in the sector, it is even logical to say that what industry sources call "crypto winter" will continue for several more weeks, at least, even if volatility is the key word in the space.

The last episode of "crypto winter" lasted from 2018 to fall 2020 before prices rebounded and soared to record highs in 2021.

Coinbase  (COIN) , the most popular of American digital currency trading platforms, has just announced new cost-saving measures. These include an indefinite suspension of hiring. Worse, the firm will rescind certain job offers made to candidates.

 on June 2.

"It’s become evident that we need to take more stringent measures to slow our headcount growth," Brock added. "Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation."

The extended hiring pause does not include roles that are related to security and compliance,  the company said.

As for the cancellation of accepted job offers, Coinbase said this will apply to "people who have not started yet."

'Coinbase Will Cone Out Stronger'

"We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways. If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side," Brock concluded.

The challenges of which the executive speaks are linked to fears of a recession in the economy. These fears have prompted many investors to liquidate risky assets, such as cryptocurrencies. 

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Recent scandals, such as the collapse of the UST and Luna coins, have also reminded investors that the industry is still young and therefore subject to many ups and downs.

The crypto market has lost over $1.7 trillion in value since November. 

 "After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce."

, and was valued at $7.1 billion in its last funding round. A 10% reduction would therefore amount to laying off a little more than 100 people.