Crypto winter and Coinbase's first mass layoff (2022)
May-November 2022What Happened
Terra's algorithmic stablecoin collapsed in May 2022, wiping out tens of billions in value. In June, Coinbase cut roughly 1,100 jobs—about 18% of staff—as trading volumes plunged. FTX, then the second-largest exchange globally, failed in November, deepening the downturn and pulling Bitcoin below $16,000.
Outcome
Coinbase's revenue fell sharply through 2022 and 2023, and the stock lost most of its post-IPO value. Multiple crypto lenders—Celsius, BlockFi, Genesis—filed for bankruptcy.
The sector consolidated around a smaller number of better-capitalized firms. Spot Bitcoin ETF approvals in January 2024 and the 2024-2025 rally restored revenue, setting up the current contraction.
Why It's Relevant Today
Coinbase is following almost the same playbook—cutting 14% of staff during a price and volume slump—suggesting the industry's boom-bust cycle has not been broken, only stretched.
