Coinbase CEO, Brian Armstrong, sells over $1.6 Million in Coinbase shares. The sale of assets took place shortly after another wave of layoffs at Coinbase.
One of the few businesses to publicly state that they were unaffected by the consequences as the ongoing FTX controversy shattered expectations of the ongoing crypto winter coming to an end was Coinbase. Although the exchange’s CEO, Brian Armstrong, assured customers that Coinbase would not experience a similar fate, things don’t appear to be looking well for the platform either.
According to Coinbase CFO Alesia Haas, the company just fired off another 60 people as a direct result of the present scenario, following an 18% drop in the size of its personnel earlier this year. She also hinted that this may not be the final wave of layoffs.
“If we see that there is going to be further decreased revenue, and if we believe this is going to impact beyond the scenarios we have already planned for, we will have to take further cost-saving action.”
In an effort to reduce expenses and maintain operations without interruption in the face of challenging market conditions, numerous cryptocurrency companies, including Coinbase, have slashed staff. However, given the price at which the company’s CEO sold the assets, it’s possible that Coinbase’s financial situation is worsening.
Assets Sold For a Sixth of Their Yearly High
Brian Armstrong just sold 29,732 shares for a total profit of $1,625,151.12. 13 trades using Coinbase stock (COIN) totaled 13 transactions at an average price per share of $54.66. The sale of a smaller quantity of 300 shares, each worth $46.70, resulted in the lowest price. Although the prices above are by no means low, they pale in comparison to what Coinbase stock was worth earlier this year.
One Coinbase share was valued at $348.49 at its peak price in 2022, more than six times the current average price throughout the selloff. At COIN’s height, the deal would have been valued more than $10.36 million. Even if we solely consider more recent statistics, the situation is not significantly better.
In the end, the selloff may also be a sign that investors are becoming more interested in Coinbase, especially given how effectively they have so far weathered the crypto winter. However, because the bear market appears to be here to stay for the time being, cryptocurrency platforms will need to keep things tight in order to survive.