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Coinbase CEO Brian Armstrong Warns Investors
Will Coinbase endure the crypto winter? Currently, the stock is down more than 70% from last year, and CEO Brian Armstrong has said that Coinbase will keep cutting costs.
Coinbase faces challenges on the regulatory front and the overall cryptocurrency winter, which has brought the stock down more than 70% in the past year.
This has meant that the company has reduced around 18.5% of its staff, and its CEO Brian Armstrong has said that the company is continuing to seek ways t
o lower costs.
While Armstrong told CNBC his employees that the layoffs were meant to be a one-time event, he admitted that "anything could occur."
Armstrong is looking to shift Coinbase to a point where subscription fees and related services comprise more than 50% of its revenue compared to its current rate of 18%.
Currently, around 20% of revenues come from fees associated with trading,
Which has prompted short seller Jim Chanos to bet against the stock because he believes there will be a reduction in costs due to increased competition.
Furthermore, Coinbase is dealing with an SEC investigation into the platform for illegally permitting customers to sell a digital asset which should be classified as securities.
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