Coinbase in exploration streak as it plans to open operations in European market

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The crypto downturn is killing crypto institutions.

The crypto crash that happened in May truly slaughtered institutions that deal in cryptocurrencies. Billions of dollars wiped out in the market due to market implosion. The world’s most capitalized cryptocurrency bitcoin has lost around 70% of its value since its peak in November last year.

Crypto exchange giants, such as Coinbase, subsequently laid off 18% of their workforce to deal with the deadly market situation. Many crypto experts even believed that the market was entering a phase called Crypto Winter, presenting the risk of wiping out the entire market.

Coinbase’s European Exploration.

On June 13, Coinbase then announced the layoff of 1,100 employees from its organization, citing the market situation as the reason. In recent news developments, it appears that Coinbase is planning to explore the European crypto market and plans to open its operations in countries like France, Spain, Italy and the Netherlands. .

Coinbase Vice President of Business Development and Integration Nana Murugesan said the company plans to expand into Europe and grow its institutional and commercial presence in the country. Along with mentioning that the company has employed its first employee in Switzerland, Murugesan said that with sector valuations having collapsed in the wake of the recession, the company will consider acquisitions that will accelerate its expansion goals.

The crypto market downturn continues.

Photo credits: CoinCentral

The crypto market implosion that occurred in May is not looking to stop and has been constantly prolonged for one reason or another. Scandals such as Terra USD and Three Arrows have caused the market to remain at historic lows. Investors continue to float towards dollars, as evidenced by the 1.2% spike in the DXY since June 27.

Coinbase Coin stock is also in negative flux.

Coinbase stock Coin is also facing massive repercussions from the implosion of the crypto market. The stock price has been reduced by at least 80% from its peak. Goldman Sach’s rating to investors downgrading Coinbase also played a key role in the rapid decline in stock prices. Goldman Sach said the company’s exit expenses remained a big concern. Coinbase expects a decrease from the prior quarter in both its monthly active users and overall trading volume in the second quarter. On August 9, the Q2 report is expected.

Writer’s report:

Given the current market situation, the plan to expand Coinbase’s arm into the European market seems wrong. The main point to consider is the recent layoff of employees to cut costs. Whether the European market helps Coinbase or not, only time will tell.

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