In an interview with CNBC, Coinbase CEO Brian Armstrong reveals that the exchange is cutting costs and focusing on subscription plans. Armstrong talked about Coinbase’s decade-long journey and revealed new details for future plans.
He revealed that the exchange wants to move away from trading fees as its main source of revenue. He explained the reason being the dried up cash flow as the crypto bear market starts to show up.
Talking about future plans, Armstrong revealed, “We’re investing today so much in subscription and services revenue”.
He further added, “We’re realizing that trading fees… [are] still gonna be a big part of our business ten years from now, even twenty years from now, but I’d like to get to a place where more than 50% of our revenue is subscription and services.”
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He revealed that as of now, 18% of Coinbase’s revenue is earned from subscription services and that there will be some kind of subscriptions coming out soon. He hinted at subscription-based staking offerings.
The CEO also believes that the crypto-exchange needs to expand in a true global sense and beyond the U.S. centric outlook.
Regarding the cost-handling measures, Armstrong will be cutting costs to prepare a plan for a bear market that lasts 12-18 months or longer. About the recent 18% layoff, Armstrong said the initial round of layoffs were meant to be a one-time event.
Armstrong concluded that the exchange intends to be the most compliant, the most regulated, the most trusted product.