Bitcoin news – live: Crypto exchange Coinbase sacks staff amid price collapse

What are cryptocurrencies? | Decomplicated

Bitcoin has crashed below $24,000, reaching its lowest levels since the end of 2020.

More than $200 billion has been wiped off the entire cryptocurrency market on Monday morning.

It is the latest in a series of price crashes for the cryptocurrency, which has seen it drop more than 60 per cent in value over the last seven months.

While many crypto holders are liquidating their assets, crypto lender Celsius told customers that they would be temporarily unable to withdraw funds from the platform.

Crypto exchange Coinbase has also announced that it is culling over 1,000 employees after previously rescinding job offers. The company made $800 million last year.

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Other crypto firms are reducing heads

As well as Coinbase, BlockFi CEO Zac Prince has that the company will be “reducing [its] headcount by roughly 20 per cent”.

Crypto.com also announced that was laying off 260 employees.

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“If [Celcius] goes into full liquidation mode, then it will have to close out these positions,” said Omid Malekan, an adjunct professor at Columbia Business School, but a sell off of crypto assets is likely to only affect the crypto market – although inflation and a general crash among tech stocks has also happened recently.

Adam Smith14 June 2022 16:20

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Crypto investors are worried about another downturn

“In the medium term, everyone is really bracing for more downside,” said Mikkel Morch, executive director of crypto hedge fund ARK36, told CNBC.

“Bear markets have a way of exposing previously hidden weaknesses and overleveraged projects so it is possible that we see events like last month’s unwinding of the Terra ecosystem repeat.”

Monsur Hussain, senior director of financial institutions at Fitch Ratings, also told the publication that the liquidation of Celsius’ assets would “further rock the valuation of cryptoassets, leading to a wider round of contagion within the crypto sphere.”

Adam Smith14 June 2022 16:00

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Adam Smith14 June 2022 15:40

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El Salvador’s bitcoin plunges

(The Independent)

Adam Smith14 June 2022 15:30

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Coinbase users could lose their crypto

Last month, Coinbase warned users that their cryptocurrency could be at risk if the exchange ever went bankrupt.

“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, the warning states.

Adam Smith14 June 2022 15:14

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Over 1000 people to leave Coinbase

According to reports, Coinbase has roughly 5,000 full-time workers, translating to around 1,100 people who will lose their jobs.

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Coinbase employees are to receive emails from HR to tell them if their job was affected, he said. Those would be sent to their personal email addresses, since the people being sacked would immediately lose access to the company’s systems, Andrew Griffin reports.

Adam Smith14 June 2022 14:42

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Coinbase executives are $1.2 billion richer

Coinbase‘s Brian Armstrong and Fred Ehrsam, along with two other executives, netted about $1.2 billion in proceeds from selling stock.

They sold the shares at prices ranging from $189 to $422. Coinbase opened at $381 on April 14, 2021, its first day of trading. On Wednesday, the stock closed at $67.17, the Wall Street Journal reports.

This huge profit comes as Coinbase culls over 1,000 members of staff.

Adam Smith14 June 2022 14:21

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Coinbase says a ‘crypto winter’ is coming

Crypto exchange Coinbase will sack 18 per cent of staff amid fears of an incoming “crypto winter”.

Brian Armstrong, Coinbase’s chief executive and co-founder, said that he admitted the company had grown too quickly and was to blame for at least some of its problems.

But it now faced a situation in which it had to sack a large proportion of its staff in order to keep the company secure through any future economic downturn, he said.

Coinbase employees were to receive emails from HR to tell them if their job was affected, he said. Those would be sent to their personal email addresses, since the people being sacked would immediately lose access to the company’s systems.

Adam Smith14 June 2022 14:00