Coinbase Announces Hiring Freeze, Rescinds Job Offers – Should You Move Your Crypto?

Mandatory Credit: Photo by Jakub Porzycki/NurPhoto/Shutterstock (12496465d)Coinbase logo displayed on a phone screen and representation of cryptocurrencies are seen in this illustration photo taken in Krakow, Poland on September 28, 2021.
Jakub Porzycki/NurPhoto/Shutterstock / Jakub Porzycki/NurPhoto/Shutterstock

Troubles continue for Coinbase as the company announced it was extending its hiring pause and rescinding a number of accepted offers. While this new issue might trigger anxious customers to switch platforms, Coinbase is not alone and is joining an ever-growing list of crypto platforms making similar moves amid a difficult environment for the space.

See: 7 Best Coinbase Alternatives for Cryptocurrency Transactions
Coinbase Fees: Here’s a Full Breakdown of How To Minimize Costs

“Two weeks ago, we paused hiring while we took time to reprioritize our hiring needs against our highest-priority business goals. As these discussions have evolved, it’s become evident that we need to take more stringent measures to slow our headcount growth. Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation,” L.J Brock, Chief People Officer, said in a blog post on June 2.

Amid a very difficult environment for cryptos, shares of Coinbase are down 72.5% year-to-date and are down 6.5% on the morning of June 3.

Some customers might want to avoid the anxiety altogether and just switch platforms. It’s important to note, however, that Coinbase has company in hiring freezes. Gemini, run by billionaire twins Cameron and Tyler Winklevoss, said that it would slash the company’s workforce by 10% as trading across the industry slumps, Bloomberg reported.

“This is where we are now, in the contraction phase that is settling into a period of stasis — what our industry refers to as ‘crypto winter,'” the Winklevoss brothers wrote in a memo sent to employees and obtained by Bloomberg News. “This has all been further compounded by the current macroeconomic and geopolitical turmoil. We are not alone.”

Back in April, Robinhood announced it would cut 9% of its workforce “following a period of “hyper-growth” as GOBankingRates previously reported.

“While this decision was necessary, it was not one we undertook lightly, and I’d like to share our rationale,” CEO Vlad Tenev wrote in a blog post, adding the company will provide significant support “around separation packages, healthcare, and job search assistance.”

Customers who decide to switch platforms have a plethora to choose from. Platforms vary in fees, the number of coins and features offered.

According to Coinguides, if you want to transfer any cryptocurrency, all you require is the destination wallet address (deposit address). “No matter which exchange you wish to transfer your funds to; the exchange will provide you with the receiving address.”

Coinguides also notes that you need to make sure you have copied the correct address of the coin that you are looking to deposit.

“For example copying BTC address and sending ETH to that address will result in loss of your coins.”  

According to Stilt.com, when you send your cryptos from Coinbase to Binance for example, once you’re done with the transaction,  “you will also be able to view the Coinbase fee, network fee, total and the estimated time of the transaction.”

If you are considering a switch, GOBankingRates previously shared a list of Coinbase alternatives. Here are some platform options:

eToro: There is a 1% fee for buying or selling crypto assets on eToro. This 1% fee is added to the market price (bid-ask spread) and is included in the price we show when you open or close a position, according to its website. The platform also has a “copy” feature, which enables customers to copy trades from top-performing traders, instantly replicating their trading in your own portfolio.

Gemini: Gemini’s fees vary depending on the amount of the transaction. There are a convenience fee and a transaction fee for both web and mobile orders. Fees vary between $0.99 and $2.99, or 1.49%, depending on the amount. The security on the Gemini platform is impressive and the platform is well-suited for beginners who do not need a lot of advanced capabilities, as GOBankingRates previously reported.

Binance US: The platform has pretty straightforward fees with a 0.1% spot trading fee and a 0.5% Buy/Sell crypto fee.

Live Richer Podcast:  How To Get Free Rent and Retire Early
Metaverse Real Estate: The Where, Why & How Much of Investing in a Virtual World

Coinbase has been rattling customers’ nerves for a while, between acknowledging that customer portfolios could be held in case of bankruptcy, previous rounds of layoffs and the current hiring freeze.

More From GOBankingRates

Share this article:

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
Learn More

1pximage