Coinbase Closes Shop On Coinbase Markets Office And Cuts Off 30 Engineering Jobs
Coinbase Shuts Down Coinbase Markets Office And Axes 30 Jobs
Coinbase, one of the largest crypto exchanges in the United States, has recently decided to shut down a Chicago office that the company opened last year. 30 engineering jobs were also axed during the shutdown of the office.
This division was called Coinbase Markets and its main goal was to provide technology for the company that would be used in matching engines and high-frequency trading of cryptos.
The main reason for shutting down the office is because it “didn’t work out”. According to the spokesperson of Coinbase, the company wants to be the “Google of crypto”, so they have to try new things, but not all of them will actually work out as intended at first.
When the new office was started, it was a big thing. At the time, the company affirmed that the new office would provide the company with several talented engineers and that they were really able to offer reliable services for the exchange. That did not seem to happen as intended, as the office is being shut down.
The two leads of the office, Derek Groothius (current engineering head, former Chief Software Engineer at DRW) and Paul Bauerschmidt (current product lead, former CME employee) were also fired, so they will be leaving Coinbase soon.
Some of the employees of the office will be relocated, especially the ones which were not directly connected to the matching engine, which seems to be the fatal failure of the office. These employees will move to San Francisco and start working in the main office of the exchange.
Coinbase Markets, The Office That Shut Down
When the office was created for Coinbase Markets, the main goal was to devise a technology that could be used for high frequency and low latency trading with crypto.
After the initial experiment, it simply does not seem like Coinbase is prioritizing the development of this kind of technology anymore. Now, the company is more interested in courting the institutional investors by offering them over the counter (OTC) markets instead.
However, all the technology created in Chicago will be retained by the company and integrated into its current technology, which can be used to upgrade the current technology used in the company.