[Re: Coinbase to cut staff by 18 per cent as it warns of crypto winter, June 14]
Hailed by many cynics as the downfall of crypto, the recent crypto crash is symptomatic of the broader volatility of the crypto market and of the wider economy.
Crypto exchanges have grown at a rapid rate over the last year through the prolonged bull run. However, like any company faced with a weakened market, they have had to slow down.
We must not forget that, for many exchanges, this is the first time they have dealt with such a major crypto winter. These firms which have grown at light speed are now having to effectively manage their costs during the downturn, which can have unfortunate repercussions.
However, as firms start to restructure and streamline, those with unsustainable business models will be weeded out. This, therefore, will mean that when we exit this bearish period, the industry should hopefully consist of DeFi platforms that are more secure and trustworthy.
Renewed retail and institutional confidence in crypto exchanges, coupled with effective regulation from financial bodies, will aid crypto in fulfilling its potential and will allow it to emerge from this downturn in a stronger position than it entered.
Ultimately, this will be seen as a vital stage in the evolutionary process of decentralised finance.
Todd Crosland
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