In response to the crash of the cryptocurrency market Coinbase has laid off 20% of its global staff.

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In response to the crash of the cryptocurrency market Coinbase has laid off 20% of its global staff. This move comes after bitcoin values dropped dramatically, which is blamed on the slowing global economy.

The CEO and co-founder of Coinbase claim that the business has suffered because of dishonest competitors.

“In 2022, the cryptocurrency market went down with the rest of the economy. We also saw the fallout from shady players in the industry, and it might grow even larger.” According to a post by Brian Armstrong on the company blog.

The FTX founder, Sam Bankman-Fried, has pleaded not guilty to charges of stealing billions of dollars from consumers, and the exchange has filed for bankruptcy. There have been calls for stricter regulation in response to the corporation’s downturn.

Read more: In A 100 Million Settlement With New York’s Financial Regulator Coinbase

As the value of cryptocurrencies fell during the year, not only did FTX struggle but so did other industry giants like Three Arrows Capital and Celsius Network.

Costs are projected to increase from £122.62 million ($163 million) to £134.14 million ($220 million) due to the company’s reorganization.

Still, Mr. Armstrong is confident that his enterprise and cryptocurrency will fail.

“There is no imminent threat to Coinbase or cryptocurrency. Despite recent setbacks, I have faith that Coinbase will ultimately prevail. “The blogger made this claim on his site.

The number of people lets go for the third time in a year.

More than 60 recruiting and institutional onboarding team members were let go in November following a June round of layoffs that affected 1,100 workers (18% of the company’s total workforce).

Mr. Armstrong acknowledged the possibility of future layoffs. Some divisions will be eliminated, while others will continue to function with reduced staff due to the releases.

“It is planned to abandon many low-quality projects. Today, we will distribute this data to the relevant teams.” Mr. Armstrong was the one who commented.

The other projects will proceed as planned but with fewer people.