Coinbase Cutting Back

We made it to the middle. Happy Wednesday. It’s no secret crypto markets are getting hammered. And company executives are doing what company executives do. Letting the axe fall on everyone but themselves. It’s nice to know that the more things change the more they stay the same.

Today's Topics:

• Coinbase cuts its workforce

• Crypto downturn sees millions pulled out of digital funds

• New features on OpenSea to protect from NFT scams

• Minimal fiscal risk on El Salvador despite Bitcoin crash

• Quick Links

Coinbase Cuts 18% of Its Workforce

In expectation of an extended crypto winter, Coinbase has started cinching its belt. Unfortunately, the belt-tightening comes in the form of laying off employees. 1,100 of them to be exact.

CEO Brian said of the cuts, “It is now clear to me that we over-hired.” We’re sure that makes those being let go feel all warm and good. Emails were sent out to the affected employees yesterday, letting them know that their time with the crypto exchange had come to an end.

Employees will receive 14 weeks of severance and have access to the Coinbase talent hub, which the company created as a way to help workers find jobs. Of course, Coinbase isn’t the only platform to make cuts. Recently Blockfi, Crypto.com, and Gemini have all made decisions to reduce their workforce as well.

Crypto Downturn Results in Millions Pulled

As the crypto market continues its bearish trend, millions of funds are flowing out of digital asset funds. Bitcoin and Ethereum combined to see outflows totalling $98 million last week alone. Much of the outflows are attributed to the potential rate hikes coming from the U.S. Federal Reserve, which is expected to raise rates soon.

Always the center of attention, the United States alone accounted for the vast majority of the crypto outflows, with $98 million moving in the US versus just $2 million in Europe. Many believe this signals instability in U.S. markets.

OpenSea Launches Features to Protect Users from Scams

Arguably the most popular NFT platform, OpenSea, has been criticized for its unwillingness to address problems with plagiarized and stolen NFTs (non-fungible tokens). All that’s about to change as OpenSea announced some new features to keep scammers from taking advantage of NFT creators, buyers, and sellers.

These new features are designed to find and address potentially harmful transactions before they can do any damage. According to the OpenSea blog post, the platform is taking the necessary steps to “hide suspicious NFT transfers from view on OpenSea.

OpenSea won’t delete these types of transactions. They’re only going to hide them from view. Think of it as spam in your email. The vast majority of those messages should be relegated to the depths of email Hades. But some of them are simply mistakes or oversights. 

That’s how OpenSea plans to treat these potentially nefarious transactions while keeping its users safe and secure.

El Salvador Standing Strong Despite Bitcoin Drop

We don’t know if it’s arrogance, ignorance, or something else entirely that’s causing El Salvador’s Alejandro Zelaya to spit in the face of, well, basically the entire world. Despite recent drops in the price of Bitcoin, the country’s finance minister argues that its economy is stronger than ever, primarily because they’ve suffered no financial losses.

Zelaya says that even though Bitcoin is suffering significant losses, El Salvador has yet to sell any of the digital coins in its coffers. As a result, the country has not suffered an alleged loss of $40 million. Additionally, the minister says, “$40 million is not even 0.5% of our national general budget.”

Others view the country’s position as reckless and careless, while the IMF (International Monetary Fund) continues to be one of the harshest critics of El Salvador’s actions. We’re rather enjoying the show Zelaya and the El Salvadorian government are putting on. 

Excuse us, we forgot to grab our popcorn.

Quick Headlines

Get out while you can? - Is the worst yet to come? Raoul Pal, Scaramucci, Novogratz, and Hayes all have opinions, and they’re not the same.

Making the best of a bad situation - Been there, done that. Put your coats and hats in storage, because after Crypto Winter comes Spring.

I'm ready for my close up, Mr. DeMille - Cool Cats become alley strays. This is what happens when Hollywood tells you that you have it made.

Hiring or firing? - Binance seems to have it all figured out as they beef up staff rather than cutting back. Maybe they know something we don’t.

Everyone is doing it- Voice your frustrations. Scream. It’s required. This Telegraph therapy group could save you some money on actual therapy. 

‘Ello gov’na! - Mayor Eric Adams isn’t a fan of the New York State senate’s cap on Bitcoin mining, and the governor is hearing about it.

Animated alligators and Lacoste looking for love - The average person gets voting power for a luxury brand while creative types create customization.

Is Web3 obsolete? - With Jack Dorsey’s plan to launch Web5 (I know, I know, enough already), you may think we’re all abandoning Web3, but not so fast. The Consensus 2022 conference may just prove its merits.

Regulation:

Not the kind of probe you want - Routine check-ups or compliance violations? Insider trading controversy launches investigation, SEC gets involved.

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Disclosure: We are a newsletter for information only. We are not financial advisors nor do we claim to be. Consult your legal, investment or tax advisor. Crypto is risky. Do you own research.