Who do you think is running this company? I was a little offended not to be included :).”
“Second, if you have no confidence in the execs or CEO of a company then why are you working at that company? Quit and find a company to work at that you believe in!” he added.
2/ First of all, if you want to do a vote of no confidence, you should do it on me and not blame the execs. Who do you think is running this company? I was a little offended not to be included 🙂
— Brian Armstrong – barmstrong.eth (@brian_armstrong) June 10, 2022
4/ Third, making suggestions on how to improve the company is a great idea (in fact, we expect everyone to be a part of that).
Coinbase NFT platform,” “unsustainable” hiring practices and a “generally apathetic and sometimes condescending attitude” for the three executives it referenced.
Armstrong called the decision to publicly circulate the petition “deeply unethical” and warned that any workers found to be responsible would be terminated.
“It’s also dumb because if you get caught you will be fired, and it’s just not an effective way to get what you claim to want,” he tweeted.
Coinbase representatives did not immediately return a request for further comment.
The petition and subsequent tweets from Armstrong are the latest sign of trouble at Coinbase, which has been under intense pressure as market volatility and a steep plunge in cryptocurrency prices weigh on its stock.
Shares fell more than 13% in trading Monday during a broader selloff.
That would have given the company a market cap of $65 billion.
Soon after debuting, the price hit $300. Then $350. Then $380. Then $400. Then, very briefly, $430.
At $430, the company’s market cap was $112 billion.
Brian Armstrong owns 20% of Coinbase’s outstanding shares.
At $430 per share, Armstrong’s paper net worth briefly topped…
At that peak level, Armstrong was one of the 70 richest people in the world. He ranked in the same ballpark as former Google CEO Eric Schmidt, hedge fund king Carl Icahn and Laurene Powell Jobs (Steve Jobs’ widow).
On May 9, 2020, the price of Bitcoin was sitting at just under $60,000.
Ten days later, Bitcoin briefly sank all the way down to $30,000.
Ethereum’s price dropped 20% in 24 hours. Binance dropped 40%.
Coinbase boss Brian Armstrong is urging disgruntled employees to quit the company after an anonymous online petition called for several key executives at the embattled cryptocurrency firm to be removed from their posts.
Armstrong unleashed a tweetstorm in response to a viral petition dubbed “Operation Revive COIN.” The petition, purportedly written by Coinbase employees, called for a “vote of no confidence” in Coinbase COO Emilie Choi, Chief Product Officer Surojit Chatterjee, and Chief People Officer LJ Brock following a recent downturn in the firm’s fortunes.
“This is really dumb on multiple levels,” Armstrong tweeted on Friday alongside a link to the now-deleted post. “First of all, if you want to do a vote of no confidence, you should do it on me and not blame the execs.
Plenty to continue making payments on that $133 million Bel Air mansion Brian bought back in January of this year. But… what if this isn’t the end of the pain?
Today Coinbase announced it was laying off 18% of its workforce.
In the company’s quarterly earning report released in May, Coinbase reported that revenue was down 27% from a year ago. Monthly transaction users (people using the service) fell from 11.4 million in the fourth quarter of 2021 to 9.2 million in Q1 2022.
Trading volume in the same periods dropped from $550 billion to $310 billion.
If Coinbase’s share price drops another 50%, which isn’t exactly an unimaginable scenario, Brian Armstrong’s net worth would be $1.2 billion. ON PAPER.
Between that low point in late May of last year and early October, Coinbase’s share price remained right around $240 a share. Then there was a bright spot! By mid-November shares zoomed all the way back up to the IPO price of $342 as the price of Bitcoin ran right back up to an all-time high of $68,000.
Unfortunately, here’s what happened between mid-November and this morning:
As you can see, in the last six months Coinbase’s share price has fallen a little over 80%.
Coinbase’s market cap has fallen from around $90 billion in November to roughly $11 billion today.
At today’s price per share of $51, Brian Armstrong’s net worth is currently…
Now, don’t get me wrong, if that’s where it stayed forever, $2 billion would be an extremely respectable net worth.
The company went public through a “direct” listing, which is slightly unusual and a bit riskier than a more traditional IPO. With a direct listing, there are no investment banks or pools of wealthy investors promising to create a market for the stock once it goes public.
Instead the company’s shares are essentially just hoisted onto an exchange, in this case the NASDAQ, for investors to buy immediately at whatever price the market makes. Sometimes that works. Other times, not so much.
Unfortunately, Coinbase is proving to be more in the “not so much” category.
Along the way, the net worth of CEO Brian Armstrong is getting obliterated.
Prior to last year’s IPO, analysts predicted Coinbase’s stock price would land at around $250 when the direct listing was complete.
In a recent memo, Armstrong outlined where Coinbase stands in terms of company culture and politics: “We are an intense culture and we are an apolitical culture,” he wrote.
He followed up by offering a severance package for any employees who wished to leave the company if they didn’t agree with its mission. 60 employees took the offer, with more still in talks to leave.
💎 Data Digs
Currently, Coinbase has around 1,420 employees, and that number has been steadily increasing throughout the year. The chart doesn’t necessarily reflect the loss of the 60 employees, most likely because many of them may not have updated their LinkedIn profiles.
According to Armstrong, the 60 who left constitute a 5% loss in Coinbase’s workforce.
⚔️ Big Picture
- Armstrong’s memo could have been influenced by a previous incident: During a company-wide meeting in June, Armstrong refused to say “black lives matter”, which prompted a virtual walkout by some employees.One employee told Business Insiderthat it was the recent memo that led to 60 employees quitting rather than the “black lives matter” incident. According to the report, Coinbase employees didn’t think of the company as a particularly political place to work at before the memo.
- Last week, tennis player and venture capitalist Serena Williamsremoved all mention of Coinbasefrom her VC site.
Her husband, Reddit cofounder Alexis Ohanian, is also an investor in Coinbase.
It’s still unclear whether the move was in connection with Armstrong’s memo or Coinbase’s new policies.
⚡ Get Ahead
The loss of 60 employees may not strike a huge blow to Coinbase, but it’s a telling sign that those employees would rather join the 12.6 million unemployed Americans than continue to work for Armstrong. The company is doing well overall,hitting a valuation of $8 billionafter a recent $300 million fundraising round.
Armstrong has been supported as well as vilified by the tech world, which, at least as far as Silicon Valley is concerned, is mostly liberal.
Investor Paul Graham came out as a vocal supporter of the new policy,saying in a tweet, “I predict most successful companies will follow Coinbase’s lead.