Amid the recent scandals involving crypto-exchanges, Coinbase is back in the news. The company has decided to cut 15 jobs, which has prompted swift action on the part of employees who are now demanding for compensations or outright keeping their jobs.
Coinbase Cuts 15 Employees Loose – Rumors
US-based cryptocurrency exchange and wallet provider Coinbase may be on the verge of cutting loose 15 of its employees. Following a spate of hires in 2018, adding to the total number of employees by 250, the company is now considering bidding some of these people goodbye.
The organization has now decided that some people will have to go which is quite the interesting turn of events.
So, moving forward, some teams – including Support, Fraud, and Compliance – will only hire employees into Coinbase offices. – Official Coinbase statement
The official stance of Coinbase is that it needs boots on the ground, referring to the presence of workers in offices. We agree with Coinbase and think that this is the correct attitude and the right way to go about it.
Having these roles by people who are committed to upholding the highest standards is not enough. Eyeballs are obviously needed to guarantee that there is no foul play, albeit in the world of cryptocurrency, we have come to learn that there is no way to successfully gauge what will happen next.
Be that the course of Bitcoin or how and when a coin exchange will be hit by hackers.
People here are pretty upset about it, and so far senior leadership is handling communications poorly. – Source within the company speaking for Yahoo Finance.
Even now that the news has been brought in the open, there is no information as to how the company would prefer to continue moving forward. Some expect Coinbase to seek and work out relocation solutions for valuable employees that are working overseas, but this will be difficult for a number of reasons.
First, the VISA regime in the United States is getting stricter and border patrols are even more strict when it comes to people entering the country these days. Relocating overseas employees is not really an applicable option it turns out.
Coinbase Facing Troubles Pile On
On October 27, Coinbase reported customer support outages, which have persisted throughout the entire day. As staff shake ups continue, so do the problems of the company which seems to be caught in an internal strife with disgruntled employees.
Meanwhile, the cryptocurrency exchange company needs to deal with the fallout of Brexit, which is already breathing down its neck. With a no deal exit looming on the horizon, it’s becoming obvious that Coinbase will have to undertake certain measures come to that.
The company has already decided to ditch London and go to Dublin, which is becoming a popular move. However, relocating its HQs will not be sufficient reason for Coinbase to troubleshoot the slew of problems that lie ahead of it.
From bolstering its own defences to finding a way to settle matters with employees, Coinbase is challenged by an ever-piling mound of problems. And even then, there have been some reasons to be hopeful.
On October, 23 Bloomberg broke the news that it will list the first “stable coin” on the market in the history of cryptocurrencies:
USD Coin will be the first so-called stable coin supported by San Francisco-based Coinbase. Circle was the first issuer of the coin in September. The consortium, called Centre, will serve as a platform for users to make deposits from traditional bank accounts, convert fiat currency into tokens issued by members to facilitate transactions and provide the ability to shift back to the greenback.
With this in mind, Coinbase may turn quite a few heads if it actually manages to work out a solution that would allow people to trade safely in crypto while retaining the value. But one way or another, cryptocurrencies will have to be backed by hard FIAT currencies.
Not surprisingly, we have seen Coinbase focus on those specific currencies that are founded in real money that are issued by central banks.
As employees continue to be disgruntled, the machinery that is Coinbase continues to push on. Dangers lurk, though, so everyone should be careful about what they do.