Coinbase: The company's revenue in 2022 will be half as much as in 2021

Brian Armstrong, CEO of Coinbase, gave an interview to Bloomberg in which he expressed extremely negative expectations for the level of income of the cryptocurrency exchange in 2022. According to him, this year the income will be half as much as in 2021, or even worse.

He associated such expectations with the global downtrend in the world of cryptocurrencies and the collapse of the FTX exchange. This turn of events significantly undermined investor confidence in cryptocurrencies, in connection with which the chain reaction led to unpleasant consequences that affected the Coinbase exchange. The company's shares fell by 80%, and Coinbase's revenue in the 3rd quarter of 2022 was 4 times lower than in the case of the 4th quarter of 2021.

The total revenue level of the cryptocurrency company last year was about $7,000,000,000, and the profit before payment of obligations was $4,000,000,000. At the start of 2022, Coinbase's preliminary speculation about their loss rate this year was more optimistic than it turned out to be. Analysts believed that the loss would not exceed $500,000,000. Based on the results of almost the past year, a preliminary assessment of the chief executive officer indicates more significant expenses that may exceed $3,200,000,000.

Brian Armstrong believes that the fall of the American cryptocurrency exchange is not just the result of poor management and errors made in the field of accounting, as former head of FTX Sam Bankman-Fried said. According to Armstrong, the collapse of FTX is an elaborate operation of large-scale fraud and all the consequences were deliberately allowed by Sam, and his interviews for various publications are just an attempt to deceive the community.

Sam Bankman-Fried, blamed for many of today's crypto woes.

Photo: Jeenah Moon/Bloomberg via Getty Images/Getty Images

The CEO of Coinbase also noted that Bankman-Fried's actions using client funds, which the former head of FTX is accused of, are completely contrary to US laws and terms of service. Changpeng Zhao, CEO of Binance, and Mike Novogratz, founder of investment firm Galaxy Digital, have previously made similar comments towards Sam Bankman-Fried.

Bankman-Fried has always been known for his political involvement as well, often supporting Democratic parties and sponsoring them in congressional elections. His position was so active and so much money poured in that in October he became the second largest donor to the Democratic Party, second only to George Soros.

The former head of FTX also advocated for the adoption of the cryptocurrency industry at the state level and supported crypto-friendly policies. To do this, he held meetings with officials and led conversations on the topic of improving the situation of the cryptocurrency environment in the United States.

Although the crypto market is in a global downward trend and many companies are failing and Coinbase are suffering huge losses, Brian Armstrong is still optimistic about the future. He said that he will continue to defend the interests of the cryptocurrency industry in the US, no matter what. He says that this should be given special attention, since in the coming years, crypto-currency regulation will be gradually introduced in America.

According to the head of Coinbase, in such moments, special attention should be paid to centralized exchanges, stablecoins and platforms with the ability to provide customers with custodial wallets. Armstrong also argues that various regulators need to come to a clear definition of commodities and securities in order to properly enforce the cryptocurrency asset regulation law.

The head of Coinbase notes that 20% of congressmen are currently quite hostile to cryptocurrencies and Armstrong hopes to correct this situation.