Coinbase Wants to Diversify Business Model to Tackle Crypto Winter
Fears of a long and severe crypto winter have made Coinbase to rethink its business model, which is currently dependent on trading volume.
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In an interview with CNBC, Coinbase CEO, Brian Armstrong, said that the San Francisco-based company wants to increase its revenue from subscription services up to 50% from the current 18%. He said:
«I’d like to get to a place where more than 50% of our revenue is subscription and services.»
Coinbase Reports $1.1B Loss in Q2
In Q2, Coinbase generated 80% of its revenue from fees. However, that dependency might be risky for the exchange given that the market got bogged down in the so-called «crypto winter.»
Coinbase’s services include revenue from fees for storing crypto on Coinbase Custody and other additional ventures like staking crypto. The exchange apparently now wants to generate most of its income from a subscription-based model called Coinbase One, which allows users to trade with no fees if they pay $30 per month.
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