Brian Armstrong – Chief Executive Officer of Coinbase – expects the ongoing crypto winter to last around 12 to 18 months. However, he admitted that his company is prepared for a prolonged bear market because it coincides with a broader macroeconomic crisis.
Armstrong believes Coinbase will not have problems enduring the negative conditions since it has passed through similar market declines four times in its ten-year-old existence.
It Should be Over by the end of 2023
In a recent interview for CNBC, the top executive predicted that the bear market should reign for no longer than 18 months, following which the prices of digital assets will step into a recovery mode. Nonetheless, the CEO warned that economic forecasts are hard to make accurately:
“We all hope it’ll be, you know, 12 to 18 months and a nice recovery, but you obviously have to plan for it being longer than that. And so that’s how we think about it. And we don’t try to get too cute about predicting the future.”
Established in 2012, Coinbase has already passed through previous market declines, such as the one in 2018. Keeping that experience in mind, Armstrong is confident that the trading venue will overcome the current crash again and continue to stand as one of the industry’s giants.
“We’ve been through four cycles like this as a company. We’re only ten years old… If we just don’t get distracted, and we keep building great products, we’re going to do fine over the next five or ten years,” he added.
It is worth noting that Coinbase reported a net loss of $1.1 billion during Q2, 2022, while the first quarter of the year was also quite unsuccessful. Prompted by the market downturn and the investor outflow, the company decided to cut some of its costs, and in June, it dismissed 18% of its total workforce.
To cope with those issues, Armstrong revealed that the firm will aim to “get to a place where more than 50% of our revenue is subscription and services,” expecting the fierce competition among crypto platforms to bring trading fees down.
Numerous companies, including Celsius, Three Arrows Capital, and BlockFi, took severe punches during the ongoing collapse as some even halted operations. Armstong said Coinbase has been “looking closely at every deal that’s happening right now” and might jump on the acquisition spree if necessary.
Grayscale Sees Light in the Tunnel, too
Last month, the world’s largest digital asset manager – Grayscale Investments – also compared the ongoing decline with previous market cycles. Analysts at the company outlined that the crypto winter started in the middle of June this year, and it might last until the beginning of 2023. Subsequently, the experts added that the crypto sector comes back stronger after each cycle:
“Despite price declines, liquidations, and volatility, the crypto industry continues to build and innovate, pushing the boundaries of what is possible.”
The post This is How Long Coinbase CEO Thinks the Crypto Bear Market Will Last appeared first on CryptoPotato.
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