Coinbase CEO Brian Armstrong Discusses Potential Cost Reductions and Subscription Plans
In a recent interview with CNBC, Coinbase CEO Brian Armstrong revealed plans for the exchange to navigate the ongoing crypto bear market and expand its business beyond its current US-centric outlook.
Armstrong, who is guiding the company’s vision towards building a global on-chain economy, revealed that Coinbase is cutting costs and focusing on subscription plans. As of now, 18% of Coinbase's revenue is earned from subscription services, a figure that Armstrong aims to significantly increase in the future.
"We're preparing a plan for a bear market that could last 12-18 months or longer," Armstrong said. "We believe Coinbase needs to expand globally and move away from trading fees as our main source of revenue."
The exchange aims to be the most compliant, the most regulated, and the most trusted product in the industry. To this end, Armstrong hinted at subscription-based staking offerings, which could provide a steady stream of income for the company and its users.
Despite the shift in focus, Armstrong assured that trading fees will still be a significant part of Coinbase's business in the next 10 and 20 years. He also clarified that the recent 18% layoff at Coinbase was a one-time event, aimed at streamlining the company's operations.
According to Armstrong, Coinbase is investing heavily in subscription and services revenue. In fact, he revealed that more than half of Coinbase's revenue in the future will come from subscription and services.
The planned global expansions of Coinbase are led by Armstrong, who is also guiding the company’s vision towards initiatives like the Base blockchain network token exploration. The goal is to expand decentralization and contribute to the growth of a global on-chain economy.
Interestingly, a recent survey revealed that no city in the US has a higher percentage of crypto owners than New York, with 19% of New Yorkers reportedly owning some form of crypto. This statistic underscores the potential for growth in the crypto space, even amid the current bear market.
As Coinbase continues to navigate the challenges of the bear market and expand its global footprint, it remains to be seen how the company will shape the future of the crypto industry.
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