The biggest U.S.-based cryptocurrency exchange, Coinbase (NASDAQ:COIN), is winding up most of its activities in Japan. This is part of a move to cut operational costs and international investment amid the bear market that has lasted over a year.
Coinbase to Cut Operations in Japan
Nana Murugesan, Coinbase’s vice president for business development, revealed in an interview on Wednesday, January 11th, the company’s decision to wind down operations in Japan.
Murugesan said Coinbase has “decided to wind down the majority of our operations in Japan, which led to eliminating most of the roles in our Japan entity.” However, he adds that Coinbase will retain a small staff size to ensure the safety and security of customer assets.
The move is part of a global reduction in the workforce that will see Coinbase reduce its staff size by 20%. In its second major wave of layoffs, Coinbase CEO Brian Armstrong stated that the exchange would cut 950 jobs.
Market Reaction to the Operation Cut at Coinbase
Coinbase’s decision to reduce operating costs by around 25% amid the ongoing crypto winter has been welcomed by market analysts. Barclays (LON:BARC) analysts said they were encouraged by Coinbase’s move to take financial discipline seriously.
Owen Lau, an analyst at Oppenheimer, said the cut will help Coinbase “maintain a certain loss guardrail.” The positive sentiments have seen the price of Coinbase stock, COIN, jump by 12.96% in the last 24 hours to trade as high as $43.23.
On the Flipside
- The brother of a former Coinbase product manager has been sentenced to ten months in prison. He plead guilty to the first crypto insider trading case.
Why You Should Care
Coinbase hopes to reach an “appropriate operational efficiency.” It aims to better cope with the crypto winter by reducing global operating costs.
Find more details about the Coinbase job cut below:
Coinbase (COIN) Cuts Another 20% of Workforce amid Persistent Crypto Winter
The drop in Coinbase’s market cap is also covered in:
Dogecoin (DOGE) Dethrones Coinbase by Total Market Cap: Here’s Why