Coinbase CEO Brian Armstrong said the company’s revenue will be cut in half from last year. He spoke about the financial state of Coinbase which is going through a difficult period due to the prolonged bear market. The crypto market is less impressive this year, which hasn’t improved with FTX’s sharp drop. The CEO of Coinbase made this point when he called FTX a bad actor in the crypto industry.
A rather difficult year for the crypto market
Coinbase CEO Brian Armstrong spoke about Bloomberg TV this Tuesday. He said revenue this year will be halved from last year due to the crypto winter. He claimed the company reaped around $7 billion and $4 billion in positive EBITDA, which is a measure of underlying earnings. But with everything going on right now, we can expect about a halving, he said.
In a letter to shareholders in February 2022, Coinbase outlined its ambitious workforce growth plans for this year. However, the company immediately cut 1,100 jobs in view of the prolonged bear market. It also laid off 60 other employees last month.
FTX fall calls for better regulations
The CEO of Coinbase did not fail to mention the fall of his rival FTX. After saying there was theft of investors’ funds, Armstrong called FTX a ” black dot » for the crypto industry. Falling prices and the collapse of FTX have shaken investor confidence. Coinbase Global Inc.’s stock fell 80% in 2022.
Nevertheless, this fall, which he describes as ” massive fraud is obviously not representative of the entire sector, he points out. He asserts that in traditional finance, we also encounter bad actors, like Bernie Madoff or what happened at Enron. Coinbase boss Brian Armstrong said this crisis must alert regulators to pass laws.
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