To become the global leading platform for cryptocurrencies, Coinbase (COIN) will hire 1,000 staff in India. The country will become a major pivot for Coinbase’s web3. Last year, the company hired over 300 full-time staff in India.
India is known for offering low-cost solutions. The outsourcing will save the company money in the long run as operations expand and demand for staff resources in India as a technology hub increases.
Coinbase’s aggressive growth plans failed to impress a Mizuho analyst. Analyst Dan Dolev lowered his price target from $220 to $190. He questioned the platform’s launch into non-fungible tokens. NFTs demonstrated strong demand. Still, Coinbase will probably need to increase capital expenditures to at least $500 million to support NFTs. Customers may not exchange crypto for NFTs. The lower activity on NFTs presents a risk for Coinbase. Moreover, the fad in NFTs could fall at any time. Crypto investors are already facing increasing volatility as stock markets weaken.
Crypto investors assumed wrongly that the technology stock market correction would have no impact on Bitcoin prices. They also assumed that markets seeking a safe haven away from the US dollar would buy crypto. So far, that is not happening.
Coinbase’s expansion will concern investors. To gain market share, it must invest now to reap gains later.
