Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How did the liquidation event in early February affect Coinbase users? A: Alesia Haas, CFO, explained that volatility is inherent in crypto, and the price actions in February were typical. The markets recovered quickly, and Coinbase's retail users are long-term holders. There was no meaningful impact on the business from the February volatility.
Q: With regulatory headwinds shifting to tailwinds, what other promising growth drivers does Coinbase have? A: Brian Armstrong, CEO, highlighted that Coinbase is a multiproduct business with diverse revenue streams. He emphasized the next act for crypto, which includes daily utility beyond trading, international expansion, and potential M&A opportunities. He also mentioned the importance of powering crypto utility across various apps and payments.
Q: What initiatives are now possible under the new regulatory regime? A: Brian Armstrong noted the potential for perpetual futures trading in the US, which could bring significant trading volume onshore. He also mentioned interest in tokenized securities and equities, which could offer benefits like 24/7 trading and real-time settlement. Additionally, he sees more partnership opportunities with traditional financial firms and tech players.
Q: How can Coinbase continue to gain market share despite competition from lower-cost products? A: Brian Armstrong stated that Coinbase's growth in market share reflects the trust people have in the platform. He emphasized that Coinbase aims to grow the overall market rather than compete in a zero-sum game. Alesia Haas added that efforts to add assets, improve user experience, and effective marketing will help Coinbase gain share over the long term.
Q: What are the most important regulatory changes needed for a constructive market for developers and markets? A: Brian Armstrong identified market structure legislation and token classification as crucial for opening up capital flows into crypto. He also emphasized the need for a clear framework for stablecoins and fair access to banking services. Paul Grewal, Chief Legal Officer, added the importance of a functional bill of rights for blockchain activities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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