Coinbase CEO Says a Competitor Falling Will Ultimately Help the Exchange

Joshua Ramos
Coinbase CEO Says FTX Bankruptcy Caused a Delay in Crypto Legislation
Source: Bloomberg

In a letter to employees that was made public by the platform, Coinbase CEO Brian Armstrong has admitted that a competitor falling will ultimately help the exchange greatly. Moreover, the message came as an answer to reported job cuts implemented by the company today.

The note to staff cites macroeconomic issues and the current state of the industry as the leading developments to the layoffs. Subsequently stating that the failure of a competitor will “ultimately end up benefitting Coinbase greatly.”

Coinbase CEO Speaks on Reported Job Cuts

It has undeniably been a horrid 2022 for many in the crypto sector. As plummeting prices of digital assets and overall dysfunction in the industry have led to a rather abysmal outlook. Furthermore, as the market attempts to regain its footing, the economic status of many countries is a grim one at best.

These factors all preceded the release of Coinbase CEO Brian Armstrong’s message to his employees. The statement was conceived in what can be surmised as an announcement of recently reported job cuts at the exchange. Thereafter explaining why they took place and the current state of the company.

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Source: Reuters

What is the most interesting aspect of the statement, however, is the opening two paragraphs. Armstrong begins by speaking on 2022’s crypto landscape that “trended downwards along with the broader macroeconomy.” Then, speaking on the “fallout from unscrupulous actors in the industry,” undoubtedly referring to the arrest of Sam Bankman-Fried.

Armstrong then follows that by noting the failure of competition, and overall market conditions, will actually be good for the platform. Stating that Coinbase “will ultimately end up benefiting,” from the fall of competitors. Additionally, noting such a developmental actually validates the platforms, “long-term strategy.”

Source: TechStory

Nevertheless, Armstrong notes that Coinbase has reduced its operating cost “by about 25% Q/Q, which includes letting go of about 950 people..” Adding that the impacted team members will be made aware of their terminated status today. Conclusively, Armstrong lays out the team member support for those affected by the job cuts, and a plan forward.