- Selected Coinbase users access Ethereum dApps and NFTs through the Coinbase app
- The crypto exchange has also temporarily moved away from plans to triple its workforce after a loss of $ 420 million in the first quarter
The crypto exchange and trading platform Coinbase has announced the launch of a Web3 functionality. A small number of users will have access to products of the Ethereum ecosystem, including decentralized applications such as SushiSwap and non-fungible tokens on marketplaces such as OpenSea and the newly launched Coinbase NFT.
According to the official announcement released on Monday, the launch of Web3 will allow users to explore a number of new opportunities directly from the Coinbase app using the new DApp wallet and browser. The functions are managed by multi-party computation technology (MPC), a cryptographic security protocol that enables dedicated on-chain wallets.
This means that the private key for the DApp wallet is stored by both Coinbase and the user, which is a certain element of self-custody. Coinbase Director of Product Management Rishi Dean explained that this approach was taken to ensure that there is an option to restore in case access is lost.
“This means that if you lose access to your device, the key to your DApp wallet is still safe and Coinbase can help with the recovery through our live support”, he said.
However, even with plans to allow the consumer to decentralize with activities such as swapping, borrowing and lending, only a few will initially benefit, as the service is currently limited to a few Android users residing in the United States.
The rollout is scheduled for next Monday.
Coinbase Slows Down Ambitious Hiring Plans
Recent market conditions have proved disastrous for crypto companies in all sectors, including exchanges. Coinbase is one of those who feel the tension and is now adjusting to the new weather. The exchange’s COO, Emilie Choi, stated in an update to the hiring policy that the company is delaying plans to triple the workforce as announced for this year.
“On the way to this year, we planned to triple the size of the company. Given the current market conditions, we consider it advisable to slow down hiring and re-evaluate our staffing needs in comparison with our priority business goals.“, it is stated in an extract from a letter previously sent to employees. “Employee growth is an important input to our financial model, and this is an important measure to ensure that we are running our business according to the scenarios we have planned, especially the potential adjusted ebitda that we want to achieve.“
Choi connected the decision with the current market conditions and the need to focus on priority business goals. With the change in plan, she said, the company is now committed to ensuring that recent hires are well regulated to ensure success.
Coinbase’s financial report for the first quarter, published last week, showed that the exchange recorded a net loss of $ 430 million in the first quarter of this year.