- Armstrong, the CEO of Coinbase alerted the investors.
- The crypto winter scenario has even led Coinbase to lay off the workforce in June.
The CEO of Coinbase, Brian Armstrong, hinted on CNBC that investors should be extremely cautious as the crypto rescission has been occurring over the past few days as Bitcoin and Ethereum prices have been experiencing ups and downtrends, and the market cap of cryptocurrencies has decreased from $3 trillion to $1 trillion, and traditional markets are currently experiencing a downward trend. He cautioned for safety because the consensus had already been attained.
CEO Opinion on Crypto Winter
Armstrong made it clear that, although his expectations that the bear market would end by then, the leading crypto exchange in the United States is preparing for a drop that will be even more extreme.
Armstrong said that in CNBC
“We all aspire for a nice recovery and, well, 12 to 18 months, but you have to be ready for it to take longer than that. So that’s how we view it. We also avoid trying to be overly charming while projecting the future.”
And he added that the company has survived the decline of four cryptocurrencies over the past ten years and is prepared to adapt to the current situation while waiting for warmer weather. If they simply don’t get diverted and maintain delivering excellent stuff, they will succeed over the next five to ten years.
Armstrong claimed that while Coinbase is increasingly shifting its focus toward what he called “subscription and services,” which could help the company’s financials be more accurate, the majority of the company’s revenue is linked to trading volumes on its cryptocurrency exchange. 18% of the company’s revenue is now generated from subscriptions and services.
Although the business’s revenue increased by more than 300% in the final quarter of 2018. Coinbase failed analyst forecasts in both the second and first quarters of 2022, with year-over-year net revenue dropping by around 60% and 27%, respectively. The scenario has since been revised to $500 million. and it has also resulted in the staff being laid off, he said, in June.
Coinbase’s share price surged 18% to $95.47 before recently recovering gains. On Tuesday, Coinbase stock dropped 0.41% to end at $71.18.
Recommended For You
