Coinbase, one of the biggest cryptocurrency platforms in the world, will be eliminating 20 per cent of its workforce and slashing operating expenses by a quarter amid the troubles currently plaguing the sector, its chief executive has said.
The move, which will affect 950 employees, is a result of the negative chain of events that hit the crypto sector last year, affecting the San Francisco-based company's bottom line, Brian Armstrong said in a statement on the Coinbase website.
This will be the third job cut that Coinbase has carried out in eight months.
It slashed 1,100 jobs last June — about 18 per cent of its workforce at the time — then followed it up with another round of more than 60 cuts in November.
Among the areas of Coinbase that will be affected are sales and marketing, technology and development, and general and administrative, the company said in a filing to the US Securities and Exchange Commission on Tuesday.
The company expects to take a hit of between $149 million to $163 million in restructuring expenses, with about $58 million to $68 million going to employee severance and other termination benefits, the filing showed.
Shares of Coinbase dove 2.7 per cent in premarket trading after being up more than 5 per cent, before recovering to gain 1 per cent at 9.15am New York time. Its stock lost about 86 per cent last year.
Mr Armstrong acknowledged that the crypto industry is “difficult to predict” and that the decision is part of a broader plan to “ensure we can succeed as a business in multiple potential outcomes”.
“In 2022, the crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry,” Mr Armstrong said, warning of potential “further contagion”.
“Therefore, I've made the difficult decision to reduce our operating expense by about 25 per cent quarter-on-quarter, which includes letting go of about 950 people.”
The cryptocurrency sector went through a troublesome year in 2022, marred by company collapses and cyber crimes, dragging the prices of digital assets and investor interest down.
The latest and most notable incident was the spectacular collapse of FTX, which filed for bankruptcy on November 11.
The downfall of the exchange once valued at $32 billion rocked the entire industry, dealing a blow to arguments making a case for the viability of digital currencies and attracting more scrutiny from regulators on how they handle user assets.
FTX founder Sam Bankman-Fried is facing criminal charges in the US.
The FTX crash also came at a time when the collapse of major companies Celsius Network and Three Arrows Capital following massive losses was still fresh in investors' minds.
The collapse of the Luna cryptocurrency and its associated Terra stablecoin in May, as well as job losses, have also added to the industry's woes.
In addition, the sector has become the target of cyber criminals. Crypto-based crime reached its highest level in 2021, blockchain platform Chainalysis said in a recent report.
Illicit addresses received $14 billion over the course of the year, almost double the $7.8 billion recorded in 2020, the New York-based company said.
The crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion
Brian Armstrong,
chief executive and co-founder of Coinbase
In March, more than $600 million was stolen from Ronin Network, a side chain built for the play-to-earn game Axie Infinity. More than $30 million has been recovered, it was reported in September.
Last month, more than $8 million worth of cryptocurrency was stolen from the wallets of BitKeep users in an apparent cyber attack.
“Overall, it is difficult to say that the worst is behind us when it comes to crypto and that all bad actors have been flushed and that regulation is where it should be,” Naeem Aslam, chief analyst at Avatrade, said in a note on Tuesday.
Mr Armstrong, however, displayed confidence that the cryptocurrency sector will recover, saying that Coinbase has survived several bear markets over the years by “using this process”.
“We also reduced headcount last year as the market started to correct, and in hindsight, we could have cut further at that time,” he said.
However, he cautioned that the current bear market is the first time the company has seen a crypto cycle coincide with a broader economic downturn, “but otherwise it is similar”.
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario,” Mr Armstrong said.
“There was no way to reduce our expenses significantly enough, without considering changes to headcount.”
All affected employees will be notified on Tuesday, said Mr Armstrong.
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
PAKISTAN v SRI LANKA
Twenty20 International series
Thu Oct 26, 1st T20I, Abu Dhabi
Fri Oct 27, 2nd T20I, Abu Dhabi
Sun Oct 29, 3rd T20I, Lahore
Tickets are available at www.q-tickets.com
RESULT
Huddersfield Town 2 Manchester United 1
Huddersfield: Mooy (28'), Depoitre (33')
Manchester United: Rashford (78')
Man of the Match: Aaron Mooy (Huddersfield Town)
UAE currency: the story behind the money in your pockets
Scores in brief:
- New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
- William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
- Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
- Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
The Norwegian Nobel Committee, which awards the prestigious peace prize, held its final meeting on Monday, the Nobel Institute said on Thursday, a day ahead of the announcement of the 2025 laureate.
This means a decision was made about the laureate or laureates before the conclusion of an agreement between Israel and Hamas, which included a ceasefire and the release of hostages.
President Donald Trump pushed for the ceasefire as part of a 20-point plan to resolve the Gaza war.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
UAE currency: the story behind the money in your pockets
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
The specs: 2017 GMC Sierra 1500 Denali
Price, base / as tested Dh207,846 / Dh220,000
Engine 6.2L V8
Transmission Eight-speed automatic
Power 420hp @ 5,600rpm
Torque 624Nm @ 4,100rpm
Fuel economy, combined 13.5L / 100km
Stage 2
1. Mathieu van der Poel (NED) Alpecin-Fenix 4:18:30
2. Tadej Pogacar (SLV) UAE Team Emirates 0:00:06
3. Primoz Roglic (SLV) Jumbo-Visma 0:00:06
4. Wilco Kelderman (NED) Bora-Hansgrohe 0:00:06
5. Julian Alaphilippe (FRA) Deceuninck-QuickStep 0:00:08
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
