Coinbase Announces 18% Layoffs • Hacker News Board

Re: Coinbase Announces 18% Layoffs

#141

Post by livinginfear » Tue, Jun 14, 2022, 12:51 PM UTC

Barrera wrote: post #60

> If you are affected, you will receive this notification in your personal email, because we made the decision to cut access to Coinbase systems for affected employees. I realize that removal of access will feel sudden and unexpected, and this is not the experience I wanted for you. Given the number of employees who have access to sensitive customer information, it was unfortunately the only practical choice, to ensu…

Asking as a layman to macroeconomics, if you think that the current rash of crypto companies collapsing heralds a greater economic catastrophe, do you have any advice on how to best survive another dot-com style crash?

Re: Coinbase Announces 18% Layoffs

#142

Post by omnibrain » Tue, Jun 14, 2022, 12:51 PM UTC

scoopertrooper wrote: post #65

ChrisRR wrote: post #40

Earlier quoted context omitted.

Beanie Babies all over again

Worse, at least the Beanie Bros had warehouses full of stuffed toys to remind them of their mistakes in the end. All the cryptoists get is a lousy set of characters for their trouble.

And you still could use them for their original purpose: as a toy.

A few months ago I read a post on Reddit who someone who is now a teacher uses them as a occasionally gift for pupils: https://www.reddit.com/r/mildlyinteresting/comments/s5rz7s/c...

Re: Coinbase Announces 18% Layoffs

#143

Post by Nextgrid » Tue, Jun 14, 2022, 12:51 PM UTC

golergka wrote: post #70

hftthrowaway22 wrote: post #26

It’s been pretty interesting watching YC backed Coinbase get absolutely crushed by FTX, which has a higher % of crypto trading volume despite having less than 10% of the headcount. Crypto is a zero sum game, and the old Paul Graham essays and other tired VC dogmas really only work in positive sum games. FTX was founded by traders which is valuable when the ultimate purpose of the crypto industry is to separate uninfo…

> Crypto is a zero sum game How come? The same network effects that work for social networks work here, as more people and businesses use crypto, it's value proposition raises quadratically.

Nobody's using crypto for its intended purpose - its value proposition when it comes to payments is just as dubious as it ever was. The vast majority of the attention for crypto has been for its speculative aspect.

Re: Coinbase Announces 18% Layoffs

#144

Post by treyfitty » Tue, Jun 14, 2022, 12:52 PM UTC

fallat wrote: post #43

To everyone: 2017 had the exact same pattern. Coinbase is suffering this time because they didn't learn at all the lessons that happened to the companies in 2017. For example, you will not see this happen with Kraken. This is normal, nothing to see here.

Why won't one see the same thing with Kraken?

Re: Coinbase Announces 18% Layoffs

#145

Post by graeme » Tue, Jun 14, 2022, 12:52 PM UTC

capableweb wrote: post #55

fallat wrote: post #43

To everyone: 2017 had the exact same pattern. Coinbase is suffering this time because they didn't learn at all the lessons that happened to the companies in 2017. For example, you will not see this happen with Kraken. This is normal, nothing to see here.

Coinbase has survived something like 4 downturns before, the previous ones on the same strategy that they are employing now. So not sure what lessons they are not applying, that others are?

Coinbase has not, however, been through a bear market. Nor has crypto

Re: Coinbase Announces 18% Layoffs

#146

Post by schrodinger » Tue, Jun 14, 2022, 12:52 PM UTC

a_chris wrote: post #131

nemo44x wrote: post #72

Earlier quoted context omitted.

Pretty standard to not let terminated employees hang around. It feels cold but it’s just the way it has to be. Sone places will even do this when an employee submits a resignation on good terms. Just a way for the company to cover themselves.

This is absolutely untrue. In Europe we work several days/weeks after the layoff notice. You can fire people from the night to the morning only in US

It’s true in the US too, depends on the risk of terminated employees causing intentional harm. Most of the time layoffs come with severance making it similar to your “garden leave” situations.

Re: Coinbase Announces 18% Layoffs

#147

Post by danuker » Tue, Jun 14, 2022, 12:52 PM UTC

golergka wrote: post #70

hftthrowaway22 wrote: post #26

It’s been pretty interesting watching YC backed Coinbase get absolutely crushed by FTX, which has a higher % of crypto trading volume despite having less than 10% of the headcount. Crypto is a zero sum game, and the old Paul Graham essays and other tired VC dogmas really only work in positive sum games. FTX was founded by traders which is valuable when the ultimate purpose of the crypto industry is to separate uninfo…

> Crypto is a zero sum game How come? The same network effects that work for social networks work here, as more people and businesses use crypto, it's value proposition raises quadratically.

I don't use it for payments due to regulatory headaches. But the supply-side economics is not to ignore.

It is advantageous to Bitcoin. US M2 money supply grew 8.04% in the past year [0], while Bitcoin's grew ~1.75% [1].

Yes, demand has its 80% ups and downs, but each crash was to a level higher than the previous.

[0] - https://ycharts.com/indicators/us_m2_money_supply_yoy

[1] - https://charts.woobull.com/bitcoin-inflation/

Re: Coinbase Announces 18% Layoffs

#148

Post by bko » Tue, Jun 14, 2022, 12:53 PM UTC

hftthrowaway22 wrote: post #26

It’s been pretty interesting watching YC backed Coinbase get absolutely crushed by FTX, which has a higher % of crypto trading volume despite having less than 10% of the headcount. Crypto is a zero sum game, and the old Paul Graham essays and other tired VC dogmas really only work in positive sum games. FTX was founded by traders which is valuable when the ultimate purpose of the crypto industry is to separate uninfo…

I agree and am in general a big fan of FTX and the guys that work there. The CEO, Sam Bankman-Fried one of these HFT guys from Jane Street and his net worth shot up from 0 to $24 billion in just a few years. He kept things super lean and focused. But in the last few months it looks like he's hired a PR team and is all over the place: podcasts, obviously planted news stories, etc. He even hired a head of fashion and luxury partnerships and even has an ad out in Vogue.

I get that he may be looking forward to spending his wealth, but I feel if he doesn't keep focused his company will decay and he'll get sucked up into celebrity BS.

https://markets.businessinsider.com/news/currencies/ftx-bloc...

Re: Coinbase Announces 18% Layoffs

#149

Post by NikolaNovak » Tue, Jun 14, 2022, 12:53 PM UTC

Barrera wrote: post #60

> If you are affected, you will receive this notification in your personal email, because we made the decision to cut access to Coinbase systems for affected employees. I realize that removal of access will feel sudden and unexpected, and this is not the experience I wanted for you. Given the number of employees who have access to sensitive customer information, it was unfortunately the only practical choice, to ensu…

Unfortunately it's common enough. It's harsh, it's cold, but ultimately for companies it's a real necessity. The explanation is blunt and correct - even a single malicious actor can enact HUGE devastating harm.

It doesn't have to be hot wallet / cold storage. Source code, business plans, revenue & profit statements, SSH to servers, physical access to datacentre, client contact lists, etc etc... there's a myriad things that are either valuable to the company or can cause harm to the company.

I've been escorted out of the building during a layoff once early in my career. Friendly, smiley, fake. It felt AWFUL. I'm as goody-two-shoes pacifist laid back easy going do-no-harm as it gets... and I definitely had various strong emotions going through my head heart and body at the time. So on both cold & rational, as well as personal & empathetic side, I understand both how the individuals feel as well as why companies need to do it.

Re: Coinbase Announces 18% Layoffs

#150

Post by hansonkd13 » Tue, Jun 14, 2022, 12:53 PM UTC

golergka wrote: post #70

hftthrowaway22 wrote: post #26

It’s been pretty interesting watching YC backed Coinbase get absolutely crushed by FTX, which has a higher % of crypto trading volume despite having less than 10% of the headcount. Crypto is a zero sum game, and the old Paul Graham essays and other tired VC dogmas really only work in positive sum games. FTX was founded by traders which is valuable when the ultimate purpose of the crypto industry is to separate uninfo…

> Crypto is a zero sum game How come? The same network effects that work for social networks work here, as more people and businesses use crypto, it's value proposition raises quadratically.

The main value proposition is to sell to the next person for more than you paid. Everything else about banking the unbanked or other vague goals about being better than fiat are to convince the next bag holder.