The CEO of Coinbase says the exchange will see revenue plunge at least 50% in 2022 as turmoil weighs on crypto markets
- Coinbase CEO Brian Armstrong expects the company's revenue to dive at least 50% in 2022.
- The crypto exchange cut 18% of its staff earlier this year, slashing roughly 1,200 roles.
Coinbase CEO officer Brian Armstrong expects the crypto exchange's revenue to plunge at least 50% this year as digital assets continue to reel.
Shares of Coinbase were up 2.74% on Thursday, but are still down 82% year-to-date amid a harsh sell-off that has wiped out more than $2 trillion in market cap from the crypto sector since November 2021.
"(Armstrong) indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue," the company tweeted on Wednesday.
"Last year in 2021 we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down it's looking, you know, about roughly half that or less," Armstrong said in an interview on Bloomberg's David Rubenstein Show: Peer-to-Peer Conversations.
The warning comes after Coinbase cut 18% of its workforce in June, slashing around 1,200 employees.
It's a tough time to be a crypto company, especially a publicly-traded one. Shareholder sentiment weakens and customers often turn away from exchanges as risks continue to plague the nascent space.
Bearishness soared in the spring after the downfall of hedge fund Three Arrows Capital, centralized digital asset lender Celsius, and algorithmic stablecoin UST.
The crypto market took another hit last month, when Sam Bankman-Fried's FTX, which was once valued at $30 billion, filed for bankruptcy.