The CEO of Coinbase advertises subscriptions to contain the dependence on trade fees

The CEO of Coinbase advertises subscriptions to contain the dependence on trade fees

Coinbase is looking for paths to maintain profitability despite the collapse activities that are coming, with CEO Brian Armstrong expected to take the crypto bear market for up to 18 months-or even longer.

In a (n Interview with CNBC said his company looking for long -term Perspectives instead of concentrating on the short -term narrative on the markets.

"It is never as good as it seems that it is never as bad as it seems," Armstrong told CNBC about questions about the macroeconomic views. "We try not to concentrate on short -term heights and depths, we just zoom out."

digital assets approach a five -month drop in prices after a crash at the end of March. Together with the stock markets, they were hit by significant macroeconomic factors such as rising interest rates, inflation and the effects of war in Ukraine.

While unemployment remains low, the goods costs have risen considerably in the past 18 months Wage growth remains flat most developed economies, which means less money in the buttocks and a lower individual purchasing power.

"Krypto had the double impact of credit cases and a loss of trust due to the bankruptcy of Celsius and Three Arrows Capital," Jon de Wit, CIO of the crypto trade company Zerocap, told Blockworks.

"These conditions will undoubtedly put all crypto companies to the test, but especially those who have difficulty diversifying their sources of income."

Coinbase hopes to survive the storm by carrying out cost reduction measures and changing the way it generates income, said Armstrong, which currently depends on fees that come from trade activities in good times

In the times when market activity breaks - which is reinforced by generally falling reviews of digital assets - the income drives up. The quarterly finishes have shown that the stock market giant has become slower in recent months.

This in turn has caused problems for the share price. The Coinbase shares have fallen by more than 70 % in the previous course of the year, despite a healthy increase of 60 %, which was partially inspired by a lucrative partnership with Blackrock, which was announced at the beginning of this month.

The income of coinbase reflects the decline in crypto trade

Coinbase reported sales of $ 803 million in the second quarter of this year and thus missed the higher forecasts of the analysts by $ 50 million

In fact, the company's evaluation correlates something with Bitcoin. In November the stock reached its highest level since its direct listing when Bitcoin hovered for his own record high.

Armstrong told CNBC that Coinbase suffered similar to its competitors, with macroeconomic factors being outside the company's control. Armstrong said what it can influence, were products, cost management and ensuring that it has enough capital to survive downtime.

"Coinbase shares are closely with crypto and we expect short-term market recreations to continue a correlation with high beta," said de Wit. He added that every long-term accumulation would be a game with the market-leading institutional, developer and web3 products of the stock exchange.

and the shock of diversified sources of income could not come early enough.

The reported income show those of the stock exchange