On the 8th of December 2022, a Twitter user called Cryptowaikoah, shared an update on the Coinbase situation. The CEO of Coinbase has admitted a 50% reduction in expected revenue for 2022 compared to 2021.
Analysts previously estimated Coinbase’s annual revenue in 2022 to drop to roughly $3.3 billion this year https://t.co/673ahqdjat
— cryptowaikoah (@cryptowaikoah) December 8, 2022
In an interview, the CEO of Coinbase, Brian Armstong, shared that the expected revenue for 2022 is pegged at $3.3 billion as opposed to the $7.8 million they achieved last month. And this has had adverse effects on both their asset value and debt.
Coinbase had previously shared a loss expectation of around $500 million. This was calculated earnings before any interests, taxes, or depreciation was applied. And Brian’s estimations seem to be in harmony with that of analysts. The estimated revenue comes as no surprise to market participants.
The crypto industry has had a difficult year, dubbed the crypto winter. Investors were already skeptical about its viability, and users are pulling out their funds. Then centralized crypto projects started failing due to mismanagement and fraud. Celsius, BlockFi Inc, 3AC, and now FTX.
Speaking on the case of FTX, Brian Armstrong believes that the collapse of FTX is due to Fraudulent theft of user funds, not mismanagement as Sam Bankman-fried has been peddling in interviews. Surprisingly, SBF’s fraudulent activities have not led to any charges, and he still speaks in conferences as a free man.
He referred to the huge amounts of money SBF and his partners in crime spent both in politics to lobby the democratic and republican parties. Taking customer funds and moving them into their hedge funds, and betting against their users led to FTX sinking underwater. All the things stated above are against their terms of usage signed by users and are criminal offenses against the law.
Despite the failure of SBF and FTX and the negative effects on participants’ trust, Brian aims to continue advocating for crypto-specific legislature that would govern centralized activities and stablecoins. The aim is to define securities and commodities to protect customers from future SBFs.
Within the united states, he believes that only around 20% of congress is hostile toward cryptocurrencies and the crypto space. With many of them open to possibilities, he aims to get something positive, then moves to improve crypto standing in the G20 states.
With Coinbase stock declining, its debts rising, and a couple of other factors surrounding the market, Brian Armstrong has work cut out for him.