CEO Brian Armstrong wants to be “the most regulated” in crypto.
Coinbase has not had a great time during this bear market. Multiple arrests and investigations have been going on with the company and have left the stock of the company in a downward spiral. The revenue of the company has seen a drop as high as 60% with quarter upon quarter reporting a loss and the most current quarter reporting a net loss of $1.1 billion. The company has been around for a decade now and the CEO has plans and ideas for the future.
The major point made by Mr. Armstrong is that he intends for the company to move away from trading fees and focus more on its Coinbase One initiative , which is the monthly subscription offered to users of the platform. One reason for this change is to have a continued flow of income even during a bear market.
The plans were made simple by Mr. Armstrong, focus being put on the subscription and services offered to increase revenue into the company. This is very important as recently Coinbase shares have lost more than 70% of value. Though the price has fallen Armstrong states this is not the first time the company has dealt with such an issue and the young CEO says he tends to not focus on the short-term ups and downs.
Coinbase has recently cut about 18% of its workforce in an effort to offset losses and streamline efficiency and output.The layoffs were said to be one and done but there is no guarantee that it won’t happen again. Mr. Armstrong did indicate the company is seeking a conversion of fixed costs into variable costs as well.
Speaking on the future of the company Mr.Armstrong spoke on how the future plans would include Coinbase making 50% of its revenue from subscriptions. There is currently only one type of subscription service offered but the future will include other services such as staking that is subscription-based and more.
The company is moving forward with fee services but is also moving away from an outlook that was mostly dependent on the United States. Mr. Armstrong calmly admitted that it might have been a mistake to look at the global landscape through a U.S lens. He plans to change all of that in the next couple of years. There are crypto services offered on a buy and sell basis but not fully global.
Coinbase has many plans for the future but there are indeed many current hurdles for the company to face and many new allegations that they will need to clear up before the future can be any clearer. Mr. Armstrong certainly has his eyes on the prize but the game may be long and hard.