Cryptocurrency exchange Coinbase, like some of its competitors, struggled to hold on after the cryptocurrency crash in May 2022. Whether financial or related to internal problems, the firm accumulates difficulties.
Coinbase is now struggling to keep up with the competition
According to a report by US subsidiary of investment bank Mizuho Securities USA presented by Bloomberg, Coinbase is ranked 14th in the ranking of asset exchange platforms in terms of transaction volume, a drop of ten positions compared to November 2021. The marketplace leaves the top 10 with an average trading volume of $1.2 billion, up from $7 billion six months ago.
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Binance remains top of the list, despite numerous deals revolving around the platform, with an average turnover of $11 billion, three times less than last November ($33 billion). When Coinbase was fourth in the rankings, Bitcoin was worth $69,000, which is an all-time high. The asset has since fallen below $30,000 and is currently worth just over $21,000.
In a blog post, the company recently announced its desire to continue international expansion despite the crisis. “We are already operating in the UK, Ireland and Germany. In addition, we develop in France, Italy, Spain and the Netherlands. In all of these markets, our goal is to launch the Coinbase suite of products for individuals, organizations, and developers,” Coinbase promises.
At the same time, Brian Armstrong, CEO of Coinbase, announced that he was going to lay off 18% of his workforce, which equates to 1,100 employees out of more than 5,000 currently employed by the firm. Please note that several cryptocurrency exchange platforms are in trouble and have suspended their activities: Vauld, Celsius or CoinFlex.
Former Coinbaise Employee Involved in Insider Trading
As Coinbase tries to recover, the reputation of some of its employees has suffered. The US government accuses three people, including a former Coinbase employee, of insider trading. Isan Wahi, a former director of product at Coinbase, along with his brother Nikhil Wahi and their friend Samir Ramani, were arrested by law enforcement, according to the Justice Department.
Three friends have been accused of setting up a scheme to carry out insider trading in crypto assets. They could use sensitive information from Coinbase to anticipate certain asset exchanges and thus make profitable transactions. In eleven months, from June 2021 to April 2022, the three partners would have managed to make a profit of $1.5 million.
Coinbase did not respond to this arrest in any way. However, Philip Martin, director of security at Coinbase, posted several tweets claiming that the firm had identified an employee who had strong suspicions that sensitive information might have been leaked.