Could Coinbase lose its position as the number one digital currency exchange in the Western Hemisphere?
Coinbase is really bottoming out
The cryptocurrency exchange is often cited as one of the largest and most popular cryptocurrency trading companies in the world. It was also the first digital currency exchange to go public, joining Nasdaq in April of last year. Things were looking up for the exchange, and many thought the company would reach a peak unlike anything it had ever achieved in the crypto arena, but now it looks like things are falling apart for Coinbase, and it may take some time to the company. to fully recover.
Given that the cryptocurrency crash affects all digital currency companies, it is no surprise that Coinbase is affected as much as its size. Shares of the company initially started selling for nearly $300 each in April when the company debuted on the stock market, though those shares have since fallen into the $50 range. The company is so tied to bitcoin that since asset is falling by the wayside, it makes sense for digital currency trading to follow suit.
Furthermore, the field of cryptocurrencies is losing value like never before. Since the beginning of the year, the crypto space has lost more than $2 trillion in value. Bitcoin, the world’s number one digital currency by market capitalization, has lost 70% of its value since reaching a new all-time high in November last year (the asset peaked at $68,000), and other assets such as Bitcoin Ethereum did the same.
Now, with all those coins falling to the ground, Coinbase was forced to freeze trading just a few months ago. 2022 was supposed to be the year Coinbase tripled its staff, though those plans fell through. This news was later followed up by Coinbase, stating that it would lay off around 18% of its shares. This meant that not only would people not be hired, but many employees who attended were on the brink of losing their jobs. The situation just got uglier and uglier, and it looks like Coinbase is really feeling the effects.