Crypto Exchange Coinbase Cuts Backs on Staff, Lets Go “About 15 Workers”

Alan Wass

Leading crypto exchange Coinbase has culled a handful of staff members this week. Reports are emerging that the cutbacks have been made across its customer support team, and other sectors dealing with compliance and fraud.

The story was picked up by Yahoo Finance, but at this moment not all the details are known about the situation, although the news outlet suggests a new executive wanted to centralize its customer service team.

Although Coinbase has apparently confirmed the cutbacks on staff, the number of employees let go by the crypto exchange is yet to confirmed although Yahoo Finance sources claim it is “about 15.” The San Francisco-based cryptocurrency exchange currently offers cryptoasset trading across 32 countries and crypto storage in 190 different nations. Coinbase has 550 employees.

It is believed that most of the released employees were remote workers, but the impact of the news is apparently having a negative effect on other company employees. Yahoo reported that one Coinbase source shed light on the current climate at the company, saying:

“People here are pretty upset about it, and so far senior leadership is handling communications poorly.”

Coinbase IPO Rumors

According to Ran NeuNer, host of the “Crypto Trader” show on CNBC Africa, has been claiming Coinbase is set to go public in the near future. Some commenters have pointed out stuff cutbacks may not be the company’s best move if it is planning an IPO.

The exchange giant has received new funding earlier this month at an $8 billion valuation. Recently, it added Charles Schwab board member Chris Dodds to its board.

The downsizing could simply be removing dead wood in readiness to going public. It will be interesting to hear Coinbase’s take on the matter to clear up the subject with so many people currently speculating on the issue.

Neutral Dollar Stablecoin Founder Explains How to Access Shared Liquidity Pools

Matthew Branton, the Founder and Chief Technology Officer at Neutral, a smart contract-enabled platform that provides various financial instruments for the cryptocurrency industry, has predicted that stablecoins will have “a tremendous impact on the future economy.”

Branton, a computer science graduate from Lafayette College, told CryptoGlobe that stablecoins offer “access to a digital currency that can enable payments, credit, and banking services which many people don't have access to.”

According to Branton:

[Stablecoins are] innovative digital assets [that] will help lower the barriers for [major financial] applications and [they will also] help people transact in value [systems] they are familiar with, such as the USD [and other fiat currencies.]

“Cultivating Healthy Dialogue to Help Build Wider Understanding” of Stablecoin Market

In response to a question about how the traditional financial system could be upgraded (in terms of both the regulatory framework and technological infrastructure) so that it can allow users to legally acquire stablecoins and other digital assets, Branton remarked:

In order to ensure that regulation evolves in tandem with advances in financial technology (FinTech), dialogue between regulators and innovators is essential. Cultivating a healthy dialogue among fintech project [developers], stakeholders and regulators of traditional finance will help build wider understanding of the benefits of stablecoins, and in turn accelerate the creation of regulation and infrastructure that accommodates stablecoins in the global economy.

Neutral Dollar Aims to Provide “Diversified Exposure” to Investors at “Lower Risk”

When asked what unique value proposition the Neutral Dollar stablecoin offers, which may not currently be available in the cryptoasset market, and how this is supposed to be relevant and useful, Branton said:

The Neutral dollar provides diversified exposure, presenting a lower risk alternative against other stablecoins (which contrary to their name, may not exhibit stability) in the market. In addition, the Neutral Dollar functions in a way that creates an additional layer that allows for shared liquidity amongst constituents stablecoins, a property that isn't inherent in their design. Given the fragmented and nascent nature of the crypto market structure right now, this solution is particularly relevant and unique in the marketplace.

Responding to a question about the potential impact he expects his company’s line of products to have on the cryptoasset market, Branton stated:

The impact of our products is to not only give end-users a better means to invest, trade, or hedge cryptoassets, but to also facilitate liquidity and engage in better portfolio management practices through our products. In order for the digital asset space to reach its full potential, the industry needs reliable financial instruments that take us beyond the limitations of fiat currencies, while also upholding the highest standards in stability and transparency. In the longer term, we plan to explore the launch of a suite of financial products to improve market infrastructure and activity.

Digital Asset Security Is “Quite Solid”

Commenting on how we can ensure the security of our assets, including stablecoins users might acquire, since the technology used to transact in these assets is highly technical, Branton noted:

Given that collateral is on-chain and smart contract based, security is decentralized in nature and quite solid. Asset safety is still the responsibility of the end-user — crypto-storage extends beyond the case of stablecoins and Neutral Dollar itself.

He added: “Ultimately, once a Neutral Dollar token is deployed on smart contract networks, it will function completely autonomously. The math and algorithms that govern its operation will operate independently of a centralized entity and in a transparent manner, and provide continuous services on the network.”