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Coinbase will lay off another 20% of its staff because of the FTX collapse. Will Coinbase fail?

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coinbase will fail

Will Coinbase fail? Cryptocurrency exchange Coinbase will lay off 950 employees (about 18%) to conserve the company’s capital amid worsening market conditions. This was reported by CNBC, citing comments from the exchange’s founder Brian Armstrong.

According to him, the exchange took this step, considering the information received. The head of Coinbase did not elaborate on which insider information was involved. He added that the exchange was pushed to another round of layoffs by various stress tests:

“It became clear that we would have to cut costs to increase our odds in any of the projected scenarios.”

The layoffs are expected to help the exchange reduce operating expenses by 25%. Will Coinbase go up? However, the exchange still expects spending increases of $149 million to $163 million in Q1 2023. Coinbase will also curtail the development of projects whose profitability is projected to be low. Nevertheless, all this does not prevent the growth of USDC capitalization.

The founder of the U.S. cryptocurrency exchange believes that the industry was hit hard by the bankruptcy of FTX, which triggered a cascade of other falls (BlockFi and other companies also went bankrupt). According to Armstrong, the collapse of FTX will lead to increased oversight of the industry, which will result in new regulatory repression. Notably, back in late 2022, the exchange predicted positive changes in 2023, but now Coinbase does not seem to think so.

Earlier Coinbase already fired over a thousand employees, citing the need to “maintain stability during the economic downturn. Armstrong argued then that the company could not afford the high costs of staff in conditions of high volatility. It is noteworthy that in early 2022, high volatility did not stop the head of Coinbase from spending more than $130 million to buy a mansion in Los Angeles.

The cryptocurrency exchange FTX declared bankruptcy in November 2022 due to a large shortage of assets to cover customer liabilities. The bankruptcy decision came days after the head of the cryptocurrency exchange Binance, publicly announced that he would sell his stake in FTX. As the media found out, FTX founder Sam Bankman-Fried arbitrarily used customer assets on the trading floor to cover the debts of his trading firm Alameda Research. The exchange owed over $3 billion to large investors.

We previously reported that Galaxy Digital CEO Mike Novogratz found the mass layoffs to be rational.

Cryptocurrency

Coinbase Tanks 11% Pre-Market After $1.5B Q2 Revenue Miss

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Coinbase shares fell sharply after the company reported second-quarter earnings that missed expectations. Total revenue for the quarter came in at $1.5 billion, representing a 26% decline from the previous quarter.

The shortfall was largely driven by weaker-than-expected transaction revenue, which fell 39% quarter-over-quarter to $764 million.

Missing Expectations

In the official release, Coinbase revealed that its subscription and services revenue also declined 6% to $656 million. Despite efforts to reduce variable costs, operating expenses climbed 15% to $1.5 billion. Coinbase attributed this largely to the $307 million hit related to the data breach disclosed in May.

The crypto exchange recorded a net income of $1.4 billion, but this figure included $1.5 billion in pre-tax unrealized gains from strategic investments, including in Circle, as well as a $362 million pre-tax gain from its crypto investment portfolio. On an adjusted basis, net income stood at just $33 million, with adjusted EBITDA reaching $512 million.

Coinbase’s trading activity also underperformed the broader crypto spot market, as global and US crypto spot volumes declined 31% and 32% respectively. Meanwhile, its total trading volume fell 40% to $237 billion, and the consumer segment witnessed a 45% drop to $43 billion.

Consumer transaction revenue plunged 41% to $650 million, as volume shifted toward Simple trades amid low volatility. Institutional transaction revenue also saw a similar pattern, down 38% in both volume and revenue.

While Base Chain activity grew, other transaction revenue dropped 21% as average revenue per transaction declined.

As of the close on the previous trading day, Coinbase (COIN) shares were priced at $377.76, up slightly by $0.28. However, pre-market trading shows a sharp decline, with the stock down $42.30 (-11.20%) to $335.46. This steep drop suggests a strong negative reaction from investors, likely in response to recent earnings results.

Despite grappling with declining revenues and rising costs, Coinbase is doubling down on product innovation.

“Everything App”

Earlier this month, Coinbase rebranded its Wallet as the Base app, launching a crypto-focused “everything app” that merges trading, social media, USDC payments, mini-apps, and tokenized posts.

Announced at its “A New Day One” conference, the app runs on Coinbase’s Ethereum Layer 2 network and integrates Farcaster for social feeds, Zora for post tokenization, and encrypted XMTP chat. Users can earn from tips, interact with AI agents, and make one-tap payments.

The platform also introduced Base Pay for Shopify merchants and plans 1% USDC cashback in the US. The app is in beta, while a full public release and developer tools are expected soon.

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Cryptocurrency

Dogecoin Slides 8% but Long-Term Channel Holds, Can DOGE Rebound?

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TL;DR

  • Dogecoin dropped to $0.20, moving in a $0.23 to $0.20 range during heavy selling.
  • Analysts see support in the long-term channel and a wedge pattern aiming for $0.265.
  • Large holders bought 310 million coins, while Bit Origin added 40 million to reserves.

Dogecoin Records Sharp Daily Decline

Dogecoin (DOGE) fell 8% in the past 24 hours, dropping from $0.22 to $0.21. This was one of the steepest daily moves for the token in July. The price action moved within a $0.23 to $0.20 range, facing resistance at the top and heavy selling near the session close.

However, trading volumes spiked, with a midnight surge to 1.25 billion DOGE, which points to large liquidations and cascading sell orders from leveraged positions. 

Dogecoin trades at $0.20 as of press time, down 11% over the past week, giving it a market cap of $31 billion.

Long-Term Channel Remains Intact

Trader Tardigrade shared a 1-month chart showing DOGE inside a long-term ascending channel that has held since 2014. DOGE has often bounced from the lower boundary of this channel, shown in pink on the chart.

Meanwhile, the current price is near the lower-middle part of the channel, an area that has led to multi-month rallies when the trend held. Dogecoin’s long-term structure stays intact while it trades within this ascending channel, even after the recent decline.

In addition, Trader Tardigrade also noted that Dogecoin’s monthly candle closed as the third consecutive bullish engulfing candle, which he described as a setup for a potential “move to Valhalla.”

Short-Term Wedge and Institutional Activity

Ali Martinez noted that DOGE may be forming a falling wedge on the 1-hour chart, with a projected target of $0.265. A move above $0.229–$0.230 would confirm bullish momentum, while $0.215–$0.210 remains key support if the wedge fails.

Institutional wallets acquired 310 million DOGE during the correction. Bit Origin added 40 million DOGE to its treasury under a $500 million diversification program. Broader crypto markets remain pressured by macroeconomic uncertainty, with inflation and equity risk shaping short-term demand.

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Pepe Dollar ($PEPD) Presale Picks Up Pace as Ethereum (ETH) Hovers Over $3,600

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[PRESS RELEASE – Covina, United States, August 1st, 2025]

Within the Ethereum ecosystem, Pepe Dollar ($PEPD) has entered its presale phase. Described as a meme token with integrated utility and cultural references, $PEPD introduces a tokenomics structure intended for long-term application. Certain Ethereum wallet holders have initiated ETH transfers to the presale, indicating early transactional activity.

Overview of $PEPD’s Positioning

Pepe Dollar ($PEPD) enters the market as a parody token referencing central banking themes, aiming to engage users through cultural commentary and decentralized finance (DeFi) mechanisms. Unlike traditional meme tokens, which often adopt simplified or repetitive token structures, $PEPD integrates design elements that combine cultural motifs associated with Pepecoin and components of DeFi architecture.

Comparison to Prior Meme Tokens

Pepe Dollar ($PEPD) enters the Ethereum ecosystem following the emergence of other meme tokens such as Pepecoin ($PEPE), $BONK, $LILPEPE, and $HYPER. The $PEPD model incorporates a tokenomics framework that includes a burn mechanism framed as a commentary on centralization. Its listing on CoinMarketCap has contributed to broader visibility. On-chain data indicates that several large Ethereum wallets have begun transacting with the token during its presale phase.

Pepe Dollar Presale – ETH’s Capital Rotation

Pepe Dollar’s presale architecture and project identity offer a compelling setup:

Presale Fundamentals:

  • Current Price: $0.004688
  • Tokens Sold: 166,938,905
  • Next Presale Price (Stage 2): $0.006495
  • Launch Price: $0.03695

Tokenomics and Supply

Pepe Dollar ($PEPD) will have a fixed supply of 3.6951 billion tokens. According to the project, 29% of the total supply is scheduled to be permanently removed at launch through a mechanism termed the “Federal Burn,” which is framed as a symbolic reference to traditional inflationary monetary systems.

Additional details disclosed by the development team include:

  • No developer tax mechanisms
  • No backdoor unlock functions
  • A publicly documented tokenomics model

Ethereum-Native Infrastructure

Pepe Dollar is designed to launch natively on Ethereum and integrate with existing Ethereum-based DeFi tools. The protocol includes functionality to support a meme asset minting platform, enabling users to create, deploy, and govern new assets using $PEPD. The project describes itself as operating at the intersection of cultural commentary and decentralized finance.

Project Links and Official Channels

About Pepe Dollar ($PEPD)

Pepe Dollar ($PEPD) is a decentralized Layer-2 payment infrastructure designed for the meme economy. Positioned as a satirical digital asset, $PEPD offers an alternative approach to traditional financial systems and aims to facilitate value creation within decentralized ecosystems.

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