Coinbase For Cost-Cutting On Weak Q1 Earnings; Bitcoin Rebounds As Crypto Market Recovers

The global crypto market was trading in the green after a week filled with losses. Meanwhile, Coinbase started taking a slew of measures after its weaker than forecast Q1 2022 results.

Outlook Money Team

Updated on: 23 May 2022 9:31 am

Coinbase (COIN)

Coinbase (COIN), the US-based cryptocurrency exchange, outlined several cost-cutting measures following its weaker-than-expected Q1 2022 earnings report.

Some of the measures included reduced spending on Amazon Web Cloud Services, Datadog, cutting gas fees on internal wallet transfer and others, reported The Information.

6/ Here are the slides from my presentation at Permissionless conference https://t.co/AsP1LPrMWp
— surchatt.eth (@surojit) May 19, 2022

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The global crypto market capitalisation went up by 2.14 per cent to $1.29 trillion as of 8.50 pm. The global crypto volume was up by 28.27 per cent to $62.13 billion, as per Coinmarketcap data.

Cryptocurrency Prices

Bitcoin (BTC), the world’s oldest cryptocurrency, was trading at $30,133.69, higher by 2.53 per cent in the last 24 hours. Ethereum (ETH) was up by 2.82 per cent to $2,028.26.

“Bitcoin rebounded slightly over the weekend. Ether and other major cryptos are in the green, at the moment. Technical signals indicate a neutral to bearish outlook over the short term,” says Gaurav Dahake, CEO and founder, Bitbns.

Among other significant coins, Cardano (ADA) was up by 2.21 per cent at $0.5368, Algorand (ALGO) was trading with a gain of 1.38 per cent at $0.4378, Solana (SOL) was trading with a gain of 3.78 per cent at $52.23, Polkadot (DOT) was up by 0.97 per cent at $10.06, and Binance Coin (BNB) was up by 1.53 per cent at $318.59.

Today’s top gainer was Sweet SOL (SSOL), which was up by 532.05 per cent at $0.000000227. The top loser was TiFi Token (TIFI), which was down by 100 per cent at $0.00000000000005551.

Meme Coin And DeFi Prices

Dogecoin (DOGE) was up by 1.04 per cent at $0.08556. Its volume to market cap ratio stands at 0.03317. Rival Shiba Inu (SHIB) was up by 1.17 per cent at $0.00001189.

NEW: Coinbase is freezing hiring for two weeks, telling employees to cut costs, and giving more stock grants as stock has plunged, according to internal memos viewed by @theinformation. Scoop from @matousekmark (with an assist from me!) https://t.co/xw7Wq7NwuG
— Aidan Ryan (@aidanfitzryan) May 19, 2022

Dogelon Mars (ELON) gained 1.15 per cent to trade at $0.0000005068, Floki Inu (FLOKI) 0.96 per cent at $0.00001041 and Samoyed Coin (SAMO) 2.79 per cent at $0.005765.

In the DeFi segment, YFI (yearn.finance) was down by 0.06 per cent at $9,318.91, and Terra (LUNA) was trading with a massive gain of 28.01 per cent at $0.0002018. Avalanche (AVAX) was up by 5.1 per cent at $31.07, Uniswap (UNI) was trading with a gain of 4.06 per cent at $5.44 and Aave (AAVE) by 1.16 per cent at $93.18.

Latest Update

Among one of the cost-cutting measures was a protocol to pause hiring for two weeks and give existing employees more stock grants to offset half the difference between the earlier grants and the closing price of Coinbase last Friday. Coinbase (COIN) closed Friday trading session, down by 1.86 per cent at $66.15 on NASDAQ, New York.

In a separate tweet post, Surojit Chaterjee, Chief Product Officer, Coinbase, said, “I called on our teams to: rigorously prioritise core initiatives for highest impact, improve efficiencies, and ensure all our projects are set up for long-term success.”

“This does not mean we plan to stop investing in strategic and venture projects. We believe the down market is a great time to build for the longer term. We’re working on foundational web3 efforts and many of which I announced in the recent Permissionless conference.”