Coinbase Lays Off 18% of Staff Preparing for Possible Recession
Daily Market Wrap
Crypto market cap: 0.96 trillion, up 2.38%
BTC price stands at USD 22,528, up 1.69%
ETH price stands at USD 1,229, up 0.80%
Top gainer: Basic Attention (BAT), up 21.15%
Top loser: UNUS SED LEO (LEO), down 7.19%
News of the Day
Coinbase is laying off 18% of staff in order to prepare for a possible recession.
Why it matters:
Coinbase will cut 18% (around 1,110 employees) of full-time jobs, according to an email sent to employees on Tuesday morning
Coinbase CEO Brian Armstrong said that the cost-cutting plan is to manage Coinbase’s burn rate and increase efficiency due to a possible recession and a “crypto winter”
Coinbase is not the first crypto company to announce a slew of job cuts –lending platform BlockFi reduced its headcount by 20% on Monday, and Crypto.com is also planning to cut about 260 jobs
Crypto daily spotlight
Rumours have been swirling about Three Arrows Capital and its massive liquidity threats as ETH crashes to 17-month low.
Brief introduction: Three Arrows Capital is a hedge fund manager that provides risk-adjusted returns. The firm was established in 2012 by Su Zhu and Kyle Davies and is headquartered in Singapore, Central Region, Singapore.
Why it matters:
The Block reported that Three Arrows Capital hangs in the balance as the firm faces potential insolvency after being liquidated by its lenders
Three Arrows Capital has maintained limited contact with its counter-parties since being liquidated, and the liquidation totalled to at least $400 million, anonymous sources revealed
“We are in the process of communicating with relevant parties and fully committed to working this out,” Su Zhu tweeted on Wednesday.
According to on-chain trackers, a wallet tagged as “3AC on Nansen” has been aggressively paying back AAVE debt against its 223k ETH / $264mm position to avoid liquidation; however, Nansen has removed the “3AC” tag
Daily sector tracker
Daily News Roundup
Three Arrows Faces Possible Insolvency After Incurring $400 Million in Liquidations https://bit.ly/3MUdWar
OpenSea Migrates to its Self-Developed Seaport Protocol https://bit.ly/3mOKyrn
New Crypto Bill Clarifies That Unrealised Staking Should Not Be Taxed as Income https://bit.ly/3zESRhd
EU Lawmakers Call For Speeding Up the Passage of Crypto Law https://bit.ly/3xtYFaD
Celsius Network Hires Restructuring Lawyers After Account Freeze https://bit.ly/3Qr49LJ
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