Coinbase’s CEO’s statements about the current market condition
The CEO of one of the largest cryptocurrency exchanges in the United States went to make a statement that the market has to be well prepared and aware that the crypto winter might get prolonged by at least 12 to 18 months more. He added that, every company, investor has to factor the various possibilities of the market condition and be prepared.
Brian Armstrong also said that, the company has already been through many ups and downs in the past. It has seen many crypto down runs and has always emerged on top of it. He also added that, the company is confident that they will get on top of it again.
Reportedly, Coinbase, as a control measure to withstand the current market situation and to stay relevant in the market for the next 5 to 10 years is moving its business model to Subscription and Services model. The CEO was also heard saying, “I’d like to get to a place where more than 50% of our revenue is subscription and services.”
The market crash’s impacts on Coinbase
Credits: Inc42
Coinbase, like any other cryptocurrency company has had to face multiple difficulties in the market crash which occurred in May. The company first went on to lay off more than 1100 employees, to cut the costs of the company to stay viable in the market and not only that, they also shut external vendors and Amazon web services. While the CEO didn’t directly acknowledge that it wouldn’t happen again, it was heard at a news that he told it was a onetime event.
Coinbase and BlackRock integration!
For Coinbase, the news hasn’t always been awful. The company earlier this month announced a partnership with BlackRock, the largest asset management in the world, to give its institutional clients access to crypto trading through its platform, despite the market’s declining value. As the integration happened, the shares of the company started rising, making the partnership a profitable one at the word go.
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