Almost every crypto company is struggling, with bitcoin prices off more than 50% this year, and Coinbase’s struggles reflect those of many others in the industry. If crypto prices rise, Coinbase is likely to emerge a winner. The firm’s stock rose sharply this week, a potential sign of investor faith in its future. But after its rapid growth, Coinbase, one of crypto’s most important players, faces unique challenges in the downturn.
Coinbase raced to add employees even after the crypto market weakened this year, and sometimes before even deciding on the new hires’ responsibilities, according to former employees. It pushed into some businesses that have floundered and adopted unorthodox management practices that led to pushback among some on the staff.
Coinbase now finds itself at odds with the Securities and Exchange Commission, which has taken the position that several crypto coins traded on Coinbase’s platform are securities….
Source: Coinbase’s Rapid Rise Left It Exposed in Crypto’s Collapse – WSJ
