Coinbase is accelerating plans to offer a subscription-based training model following a tough period of declining revenue.
The crypto exchange’s CEO Brian Armstrong, told CNBC that the firm is looking to cut costs due to its losses, along with the mounting economic downturn and the current ‘crypto winter’ the market is enduring.
Having a subscription platform already in its beta phase since November 2021, Coinbase One provides customers with zero trading fees, 24/7 support and a host of other benefits for $29.99 per month.
With an aim to move away from fee dependency, Armstrong revealed he would like the crypto platform to “get to a place where more than 50% of revenue is subscription and services”, which previously accounted for 86% last year.
Armstrong’s comments suggest a response from the company’s recent Q2 results, where the crypto firm reported a $1.1bn after-tax loss, a revenue decline of 61%. Furthermore, Coinbase saw a steep decline in its trading volume due to the current crypto market downturn.
Whilst Armstrong reassures the market decline is “nothing unusual” the company’s shares on the Nasdaq market have plummeted 70%. But Armstrong appears calm by the current ‘crypto winter’ and his firm’s current situation.
He stated: “We have this saying internally, I like to repeat a lot, which is it’s never as good as it seems, it’s never as bad as it seems.
“I think one of the reasons Coinbase has been so successful in the last 10 years is we just try not to get focused on short-term ups and downs.”
Despite this challenging time, Coinbase revealed that its subscription and services had grown 18% from 4% last year, attributing this to the Coinbase premium membership, interest income, and blockchain rewards.
The Coinbase CEO also responded to questions by CNBC on whether the layoffs last June were a one-time event. The crypto exchange layed off 18% of its workforce in the wake of the current crypto winter but Armstrong is not sure if more are to follow.
“I can’t tell you what the world’s going to be like a year from now,” he said.