Coinbase CEO says market fear and volatility are a 'moment to shine'

Quick Take

  • Coinbase CEO Brian Armstrong urged employees to be “prepared to serve” customers amid market volatility, citing a large number of Binance users making withdrawals as a contributing factor.
  • The executive told staff that Coinbase does not have material exposure to rival Binance and has $5 billion on its balance sheet.

With Coinbase's shares are at an all-time low, CEO Brian Armstrong sent out a memo to staff reassuring them that unlike other struggling or failed crypto exchanges, their company would persevere.

“This is our moment to shine,” wrote Armstrong in a communication obtained by The Block. “It was not always easy, as we saw competitors skirt rules and rocket up in value and media attention.”

Armstrong also urged employees to be “prepared to serve” customers amid market volatility, citing what he called “large withdrawals happening on Binance” as potentially a contributing factor.

The 39-year-old chief executive also sought to remind staff that Coinbase does not have material exposure to rival Binance, safely stores customer assets and possesses $5 billion on its balance sheet. Coinbase shares closed Tuesday's trading session below $39 apiece, marking an all-time low.

The comments come on the heels of weeks of turmoil spurred by liquidity uncertainty and crisis, bankruptcies and layoffs spurred by the collapse of multi-billion dollar crypto exchange FTX.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.

Editor

To contact the editors of this story:
Michael McSweeney at
[email protected]
Christiana Loureiro at
[email protected]