Coinbase Cuts More Employees As Bankman-Fried’s FTX Rumbles Cryptocurrency Market – Coinbase Global (NASDAQ:COIN)

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Coinbase Global Inc COIN reportedly announced several workforce reductions to its recruiting and institutional onboarding teams on Thursday, marking the company’s second round of layoffs this year.

The staff cuts, reported by The Information, come as the broader cryptocurrency industry adjusts to the collapse of several crypto companies in the past six months, most recently industry titan FTX, spooking investors and igniting further speculative fires in the still-emerging sector.

Read more: ‘Well played, you won’: FTX’s Bankman-Fried breaks his silence on Binance debacle

Revenue problems at Coinbase and the staff cuts may be related.

Last week, the company reported third-quarter earnings with bookings of $576 million, a sequential decline of 28%.

Additionally, it missed the Street forecast of a loss of $2.40 per share, reporting a loss of $2.43 per share.

The collapse of Singapore-based crypto hedge fund Three Arrows Capital (3AC), which filed for Chapter 15 bankruptcy on July 1, was one of several major blows to the cryptocurrency sector this year.

On June 12, New Jersey-based crypto lender Celsius halted payouts and a month later declared Chapter 11 bankruptcy with a $1.19 billion loss on its balance sheet.

Voyager Digital BUILDINGa cryptocurrency lender that FTX acquired had significant exposure to the hedge fund and was severely damaged by the collapse of 3AC.

More than $650 million in claims have been made by Voyager against 3AC.

BlockFi, a cryptocurrency lender, entered into a contract with FTX on July 1 to receive a $400 million revolving credit facility and an option for FTX to acquire BlockFi for up to $240 million. At the time, BlockFi was facing a surge in withdrawals and a hit from 3AC.

Read Next: FTX US Warns Users Cryptocurrency Trading May Be Stopped In Days To Come

COIN Price Action: Shares of Coinbase traded 9.42% higher at $50.31 on Thursday afternoon, according to data from Benzinga Pro,

Photo courtesy of Coinbase.

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