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- CEO Armstrong sold 2% shares of Coinbase, but it is not related to FTX bankruptcy.
- It took place soon after the second round of “Layoff”.
- The deal has profited the company $1.6 million, but were shares sold at one-sixth of the value.
“Layoff” for Second Time
Sale of assets done soon after the second round of mass ‘layoff’ took place. Coinbase officials stated they were one among the companies who remained unaffected and suffered little exposure due to FTX collapse.
But on 8 November, Coinbase revealed that estimated $15 million of funds are struck in the recent FTX crash which are non-withdrawable due to their once called ‘competitor’ filing for bankruptcy under Chapter 11. The company also states that they have never bought any FTT tokens.
CFO Alesia Haas confirms regarding smooth working of the organization- “At Coinbase, we’re different. And as we clearly disclose, we are holding customer assets one-for-one—we are not rehypothecating them. So there can’t be a run on the bank at Coinbase.”
Coinbase, the second largest crypto exchange, cuts its staff for the second time after June. This time, they deducted almost 60 members from their recruiting and institutional onboarding team. Previously, they reduced 1,100 of their manpower which accounts for approx 18%.
Couple of weeks ago, the CEO Brian said that they have “overhired” and as a result they have to remove a few now. Coinbase has also freezed hiring. The company states that – “the job cuts will help operate as efficiently as possible”. Also, they generated a profit of $400 million last year, but it was equaled by a huge loss of $545 million in 2022.
Mild Profitable Deal
As per the media reports, Coinbase liquidated a total 28,732 shares on 11 November for $1.6 million. It was all time high at $343.99. Its shares went public in April 2021. CEO converted the Class B shares into Class A. The shares were sold one-sixth of their previous value. But the event is not related to the FTX saga.
On 15 October, he tweeted on Twitter- “I’m passionate about accelerating science and tech to help solve some of the biggest challenges in the world. To further this, I’m planning to sell about 2% of my Coinbase holdings over the next year to fund scientific research and companies like @newlimit + @researchhub”. Both the research firms focus on epigenetic reprogramming.
Massive sell offs indicate that the interest of investors in buying and holding Coinbase’s shares (COIN) is more. Even in the ups and downs of the entire crypto winter. The organization has given satisfactory financial results. But, all crypto platforms have to hit the panic button in the storm of FTX.
At the time of writing, COIN share is at $48.83. Also, Brian has previously predicted that crypto winter will be there for the next 12-18 months.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
