The Onchain Paradigm: Reshaping the Internet’s Legacy
In the Q3 2023 earnings call, Coinbase’s Co-Founder and CEO, Brian Armstrong, stated that ‘onchain’ is set to revolutionize online interaction, much like the Internet did years ago. He believes that blockchain and cryptocurrencies are disrupting the centralized web, introducing ownership into the digital realm.
Democratizing Access through Crypto
Armstrong emphasized the democratizing power of cryptocurrencies, offering equal opportunities to individuals regardless of economic or geographical constraints. He sees crypto as a force that reduces reliance on intermediaries, enabling faster transactions and enhanced security for digital assets and identity.
The Economic Freedom and Coinbase’s Vision
Armstrong sees crypto as a tool for increasing global economic freedom. He envisions today’s onchain entities becoming tomorrow’s tech titans, with Coinbase leading the way in this technological revolution.
Financial Resilience and Innovation in Q3
In the third quarter, Coinbase achieved positive adjusted EBITDA for the third consecutive term, surpassing expectations. Armstrong attributes this success to disciplined operations, cost management, favorable interest rates, and the ability to innovate despite market conditions.
Expanding Global Footprint and Regulatory Engagements
Coinbase expanded into Brazil, Singapore, and Canada. To ensure compliance and customer service, they hired local leaders and established partnerships with regulators and payment networks. They also obtained important licenses in Singapore and Spain.
The Derivatives Milestone
Coinbase introduced perpetual futures to eligible customers globally. This move was made possible by obtaining regulatory approvals from the Bermuda Monetary Authority and the National Futures Association. It positions Coinbase as a trusted platform for trading sophisticated leveraged products.
Layer 2 Innovations and Onchain Developments
Coinbase’s Layer 2 solution, Base, aims to overcome the limitations of Layer 1 networks. This transition is compared to the leap from dial-up to broadband, enhancing transaction efficiency and speed. The launch of Base led to increased engagement and asset accumulation on the platform.
Advocating for Regulatory Clarity
Armstrong emphasized the need for regulatory clarity, particularly in the U.S., to promote crypto adoption. Coinbase takes a proactive stance in legislation development and supports global crypto regulations. They view Europe’s MiCA legislation as a model and have chosen Ireland as their hub in response to this regulatory milestone.
The Undeterred Vision Amid Market Volatility
Despite market downturns, Armstrong reiterated Coinbase’s fiscal health and consecutive positive adjusted EBITDA outcomes. He highlighted the company’s reputable brand, user-friendly products, and commitment to trust, security, and compliance as their competitive advantage. Armstrong envisions a future where compliant firms like Coinbase drive a new financial ecosystem built on onchain technology.
Hot Take: Coinbase Foresees a Decentralized Future
Coinbase’s CEO Brian Armstrong believes that blockchain and cryptocurrencies will reshape the internet by introducing ownership into the digital realm. He sees crypto as a democratizing force that offers equal opportunities to individuals worldwide. With a focus on financial resilience and innovation, Coinbase has achieved positive financial results and expanded its global footprint while engaging with regulators. Armstrong advocates for regulatory clarity and views compliant firms like Coinbase as the foundation for a decentralized financial ecosystem. Despite market volatility, Coinbase remains undeterred in its vision of transforming online interactions through onchain technology.
By
By
By
By
By