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Coinbase, being a leading cryptocurrency exchange, heavily relies on trading fees for its income. When trading volumes drop, so does the company's revenue. Add to this the fact that Coinbase had been aggressively hiring during the bull run of 2021, anticipating continued growth. They were investing heavily in expansion, and suddenly, they found themselves overstaffed with a shrinking market. The company also made some significant investments in new product lines, expecting them to be major revenue drivers, but they didn't take off as quickly as they'd hoped. All these factors combined created a perfect storm, forcing the company to make some difficult decisions to stay afloat.
> Runnin' through the fire, runnin' through the rain
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