Coinbase CEO Brian Armstrong concedes to making this ‘mistake’
Brian Armstrong, the CEO of Coinbase, has predicted that cryptocurrency-related services would someday become commodities. He discussed the ambitions his organisation has to rely on subscription-based business models for revenue. In fact, Armstrong also suggested that the subscription model may contribute significantly to the company’s revenue. The strategy, however, has a long-term outlook and a 20-year vision.
The cryptocurrency exchange recently disclosed a $1 billion loss for the most recent quarter. In the face of a collapse in the cryptocurrency market, the company’s revenue decreased by almost 64% during the second quarter, compared to the same period last year.
Armstrong discussed the future ambitions for the exchange in an interview with CNBC.
Regarding the company’s sales, Armstrong told CNBC that margins would eventually exist. The CEO of Coinbase predicted that a sizeable portion of the company’s revenue will come from its subscription-based business model. “I would like to see the platform generate more subscription fees in the future,” he continued. He added,
“Everything we are building others will eventually build it and it will become more commoditized. We are realizing that trading fees is not going to be that thing. It’s still going to be a major part of our business. Ten years from now, even 20 years from now, I would like to get to a place where it’s more subscription and services.”
Armstrong wants to stop using trading fees as its primary revenue stream because, while they provide income during bull markets, they stop when gloomy sentiment takes hold.
Currently, 18% of Coinbase’s revenue comes from subscription services.
He continued by saying that the business is trying to turn as many fixed costs into
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