During a stock surge, the CEO of the major crypto exchange in the United States trading volume is announcing his company’s short- to medium-term strategy.
Coinbase CEO Brian Armstrong stated on the Bankless podcast that the company is aiming for a more sustainable and predictable revenue strategy to survive crypto cycles.
According to Armstrong, trading fees will remain significant for an extended period. However, the issue is that they are more volatile. Over the past five years, the company has been assisting in shifting more revenue towards “subscriptions and services,” which are more predictable.
These include USD Coin, custody fees, staking, and Coinbase Card. In its recent earnings report for Q4, it disclosed that almost 47% of its revenue now comes from subscriptions and services, allowing them to develop a more predictable business.
He believes that managing through crypto cycles is quite challenging, with high highs and low lows. Therefore, having more predictable revenue will benefit the company as an operator and as a public company.
Armstrong discussed Coinbase’s strategy for the future, emphasizing that the company prioritizes conducting its operations correctly in accordance with guidelines and regulations. This approach is more important to Coinbase than feeling pressured to compete with and keep up with other exchanges in the market.
Some observers view this statement as a possible criticism of Binance, which is one of the world’s largest cryptocurrency exchanges and has been subject to significant regulatory scrutiny.
Armstrong also discussed the recently launched Base, a layer 2 blockchain developed by the crypto exchange. He stated that the project’s primary objective is to positively impact the crypto space by creating and building, as opposed to solely interacting with crypto stakeholders through policymaking.
At the time of writing, the price of COIN is $64.32, up over 8% on the day. Since Friday, COIN has been up more than 18% and nearly 100% from its all-time low of $33.