-->
Brian Armstrong

CEO Says Coinbase Success Depends on Long-Term Outlook

Coinbase CEO Brian Armstrong thinks it is better for the company to focus on innovation rather than short-term market conditions. Coinbase’s second-quarter revenue of $808 million fell short of analysts’ estimate of $874 million. The company’s focus on broad trends in e-commerce and internet adoption has helped lenders stay in perspective on long-term claims during Celsius and Voyager.

Coinbase

Armstrong and COO Emilie Choi commended the company’s risk management team for making sure they were unaffected by the collapse of the TerraUSD stable coin and the explosion of highly leveraged loan products that caused both Celsius and Voyager Digital to file for bankruptcy last month.

Company’s prognosis good despite adverse headwinds

Despite the ‘hodl’ preference of many retailers and declining commercial revenue, the company strengthened its balance sheet with subscription and services revenues accounting for 18% of its turnover last quarter. It currently has just over $6 billion on its balance sheet and some mergers and acquisitions are on the way.

RELATED : Crypto Winter Could ‘End’ With Investors Added To Positions, Market Analyst Says All Worst Thing Could pass

The company claims it’s committed to cutting marketing, outside vendor, and cloud provider costs that could see less splurge for expensive Super Bowl airtime when the NFL season kicks off after the famous QR code ad at last year’s event. Although the exchange was slow in the first blocks, he is optimistic about the recently launched NFT project and sees the project, along with the confident Coinbase Wallet, as critical components for the company’s transition to web3.

bitcoin

Coinbase is facing a minefield

Armstrong said that Coinbase staff regularly meet with various policymakers about cooperation with US regulators. Citing a recent investigation by the Securities and Exchange Commission to investigate possible listing of unregistered securities, he added that any token identified as a security would be delisted.

The company’s bigger game is to become the world’s most trusted crypto exchange through regulatory compliance, but it faces a minefield. A group of plaintiffs filing a class action lawsuit against the exchange alleges that the exchange locked their accounts and handed over their assets without their consent.

Another lawsuit filed by Bragar Eagell & Squire PC, a law firm specializing in shareholder rights, alleges that the exchange made misleading statements about its compliance policies and failed to disclose in a timely manner that investors’ funds could be endangered should the company go bankrupt. Coinbase cut nearly one-fifth of its workforce earlier this year as the initial pressure on the industry intensified after the TerraUSD crash, resulting in immediate cost cuts at Coinbase and other firms like BlockFi and Blockchain.com.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

Check Also

bitcoin

EU MPs Attack Amazon’s Participation in Digital Euro Project

A cross-party coalition of members of the European Parliament on Tuesday came under fire at …

Leave a Reply

Your email address will not be published.