Despite being in the news for laying off 18% of its workforce during the crypto market recession, Coinbase world came forward to state its plans for expansion in Europe. Its two-pronged growth strategy included consolidating its position in Europe through the aforementioned expansion. Coinbase is already a top exchange in the UK and Germany, but it plans on offering its services and products in France, Italy, Spain, and the Netherlands.
Nana Murugesan, Vice Chairman, Compares “Crypto Winter” Firings to Gemini & BlockFi
In addition to the U.K., Ireland, and Germany, Coinbase plans to open operations in Spain, Italy, France, European nations, and Switzerland, according to Nana Murugesan, Coinbase’s vice chairman of international. According to him, Coinbase recently hired its first employee in Switzerland. Coinbase, a U.S. crypto giant, announced earlier this month it might lay off 18% of its workforce amid fears of a looming “crypto winter.” Other companies including Gemini and BlockFi have taken similar steps amid the slump. Still, Murugesan says Coinbase is looking for a regional manager to oversee its European operations. During times of rapid growth, the firm prioritizes “mission-critical roles” in fields such as security and compliance.
Coinbase Shares Fall as U.S Affiliate Ditches Bitcoin Transaction Fees
As the largest crypto exchange in the U.S., Coinbase is facing intense competition from newer players like Binance, FTX, and Crypto.com. Binance’s U.S. affiliate recently ditched fees for bitcoin purchases, sending Coinbase shares tumbling. In territories outside the U.S., Coinbase is keeping pace with its rivals. Binance and FTX, for example, obtained licenses in Dubai within the Middle East. In addition to obtaining authorization in France and European nations, Binance is in the process of obtaining authorization in more European nations.
In addition to higher interest rates from the central bank, the collapse of the UST stablecoin is a confluence of things. As a result of the slump in token costs, investment companies with high levels of leverage, like 3 Arrows Capital, are experiencing financial difficulties. This month, Coinbase reversed its cost-cutting strategy, revealing plans to cut roughly 1,100 workers worldwide. Despite the cuts, Murugesan says Coinbase’s U.K. workforce was less wedged, with only 7% of roles being eliminated.