With the crypto market still down as we draw nearer to one year of a crypto winter, Coinbase CEO Brian Armstrong has weighed in on its length.
It's been an eventful first half of the year for Coinbase. The firm was recently embroiled in multiple lawsuits, followed by rumours of the exchange going bankrupt. These have been dismissed by Armstrong.
The Coinbase CEO has spoken on the current crypto scenario, and whether crypto will ever recover from its existing doom.
Coinbase CEO warns the crypto winter could last until 2024
In an interview with CNBC, Coinbase's CEO shared his views on the current crypto winter, outlining that the ongoing bear market sentiment may extend until 2024. Speaking about a crypto recovery, Armstrong added it may take 12-18 months for the market to turn stable again. He said:
"We all hope it’ll be 12 to 18 months and a nice recovery, but you 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."
Armstrong further stated that the exchange had lost nearly 70% of its revenue due to the prolonged crypto winter. However, he remains unfazed with the current metrics since the company has experienced nearly four downward spirals since its inception. He added:
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 and zoom-out.
Armstrong further shared his views on the recent Coinbase layoff, adding that the mass lay-offs were supposed to be a one-time event. However, due to the changing circumstances, he now said "anything could happen".
Speaking about the increasing price volatility and instability of the exchange due to the recent crypto winter, Armstrong said that the company is looking forward to shifting its focus to subscriptions and services from its earlier approach of extracting the majority of the revenue from user trading fees.
However, he reiterated the main emphasis would be on building quality services and products to manoeuvre the crypto winter.
Some recent products include the shift from Coinbase Pro to Coinbase Advanced Trade, and more of the Coinbase Quiz offerings.
"If we just don’t get distracted, and we keep building great products, we’re going to do fine over the next five or 10 years," Armstrong told CNBC.
Read More: New Coinbase Listings: What New Coins Has Coinbase Added?
What is a crypto winter?
A crypto winter in crypto terminology refers to a period of prolonged bear market sentiment.
In simpler terms, crypto winter refers to a phase where the cryptocurrency market downsizes in terms of volume and trading and performs at low frequencies.
The ebbs and flows of the market also impact the investor mentality urging them to trade at a cautious pace. However, these phases are necessary to tone down market expectations and balance its equilibrium. After all, it can't always go up.