Brian Armstrong believes that focusing on innovation rather than short-term market conditions will help the company survive for the next five to ten years.
The company’s $808 million Q2 revenue fell short of analysts' $874 million forecast, and regulators were on its tail. Armstrong believes the company is focused on broad trends in e-commerce, and internet acceptance has helped it maintain perspective during a continuous bear market that has claimed lenders Celsius and Voyager Digital.
Armstrong and COO Emilie Choi praised the company's risk governance team for preventing the company from succumbing to the contagion that resulted from the failure of the TerraUSD stablecoin and highly leveraged lending products, which caused Celsius and Voyager Digital to declare bankruptcy last month.
The company's outlook is positive
Amidst many retail traders choosing to 'hodl,' and diminishing trading revenue, the company has intensified its balance sheet through the subscription and services income, which accounted for 18% of its revenue last quarter and is expected to grow to 50% in the coming quarters.
Its staking service is doing well, according to Armstrong, who did not provide figures, its staking service is doing well. It now has a balance sheet of slightly more than $6 billion, with some acquisitions and mergers on the way.
After the famous QR code advertisement at last year's event, the company claims to be committed to lowering marketing, external vendor, and cloud-provider costs. Its advertisements will continue to appear on other platforms, according to Armstrong.
Despite its relatively slow start, the exchange is positive about its recently launched NFT project and sees it and its self-custodial Coinbase Wallet as vital parts of the company's push into web3. Coinbase Cloud, a product geared toward developers, is also growing in popularity.
In terms of cooperation with US regulators, Armstrong stated that the company’s staff meets with various policymakers on a regular basis and that the company is willing to work with any regulator. He went on to say that any token recognized as a security would be delisted immediately, referring to a recent SEC investigation into the possible listing of unlicensed securities.
The company's long-term goal is to become the world's most reliable crypto exchange through regulatory requirements, but it continues to face a minefield of legal challenges.
One class action lawsuit filed against the exchange claims that it locked them out of their accounts and deposited assets without their permission.
Another lawsuit, filed by Bragar Eagell & Squire PC, a stockholder rights law firm, claims the exchange made misstatements about compliance policies, failing to timely disclose that investors' funds could be jeopardized if the company went bankrupt.
Coinbase famously laid off nearly a fifth of its workers earlier this year as the initial pressure on the business following the TerraUSD debacle intensified quickly, necessitating emergency cost-cutting at Coinbase as well other firms such as BlockFi and Blockchain.com. It was also chastised for canceling job offers, and Armstrong has not ruled out further layoffs.