According to Brian Armstrong, CEO of Coinbase, the crypto winter will reduce their income in half this year.
Last year, Armstrong remarked on Bloomberg TV, the firm produced around $7 billion in revenue and $4 billion in positive EBITDA.“this year, with everything coming down, it’s looking, you know, about roughly half that or less.” he added.
Based on its full-year shareholder letter, the cryptocurrency exchange company would earn close to $7.84 billion in 2021.
In the same letter, the corporation stated that one of its aims for the year was to “ambitious headcount growth.”
However, when he fired 1,100 staff a few months later because he predicted a “longer” crypto winter, Armstrong conceded that the company had “overhired.” 60 additional individuals were laid off last month.
Coinbase’s share price has decreased by 83.5% since the beginning of the year, indicating that the market expects the company to have a less successful year.
Coinbase’s third-quarter numbers, reported last month, revealed a decrease in the number of trades, as well as a 28% decline in net income to $576 million.
Armstrong said that the cryptocurrency market has to be regulated, and he believes this will happen in the United States within the next year.
He still felt FTX was a “bad actor” a few days after he declared the company’s lost money had been “stolen.”
“I do think the FTX downfall is a bit of a black mark for the industry. It’s not representative of the whole industry, of course, though,” he said. “In traditional finance, you see bad actors as well, like Bernie Madoff or what happened at Enron.”
He said that the crisis would be a wake-up call for lawmakers to make changes.
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