Coinbase slows hiring as crypto prices dive

Coinbase is slowing its aggressive hiring plans as the crypto industry prepares for what's increasingly looking like a longer-term market downturn rather than a blip.

Driving the news: "Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs," Coinbase COO Emilie Choi wrote in a late Monday note.

Why it matters: The crypto exchange previously maintained plans to hire 6,000 in 2022 despite the softness in the industry. The announcement signals that Coinbase is now readjusting its optimism.

The response: Investors cheered the move, with shares of the company rising 6% Tuesday.

Of note: These changes are not expected to affect the company's expense outlook for 2022, though it will help the company hit its adjusted EBITDA goal.

Coinbase, via a spokesperson, denied that the letter augurs layoffs.

• "Slowing our hiring simply means we’re focusing our hiring efforts on roles that will have the most impact on our business priorities," the company said via email.