Coinbase CFO: We've navigated through crypto cycles
I first say thank you. Thank you for holding on, thank you for believing in coinbase. Thank you for believing in crypto, and we are going to build a great company. We are going to build long term wealth for you with our products and our services and our customers that we will add and introduce a billion people to crypto and to our employees andrew our employees are fired up. We are here to prove ourselves. We are here to build great products and services, and we think that we have the opportunity to become a generational company, and our employees are excited to show what we can be, but just just take us inside the room, though watching the stock fall. The way it has watching crypto fall the way it has. I i imagine has to have some has taken some emotional toll. It never feels good to watch. Stocks fall and watch crypto fall, but you have to remember that this has been 10 years. Coinbase is 10 years old. This month and weve navigated through cryptocycles bitcoin fell 80 in 2017 to 2018. It fell again in 2015., so weve been through. These turns and weve always come out stronger, weve always built to new heights and weve always built more diversified products and services. So perhaps people who come to crypto have a stronger metal, but we know how to navigate through bumpy markets, and this is one more that we will navigate through and come out the other side stronger and better.
What are you seeing this week? Specifically, users have come down obviously, but have are you seeing people move their accounts out of coinbase? Are you seeing people move their accounts um to private wallets, so these last couple weeks been really volatile and so weve seen a lot of activity in crypto, but in q1, im going to focus just on. We had on q1 prices came down, but if you noticed our assets on platform were just as strong as they were in q3, and so they just came down off the q4 highs. We didnt see great outflows. We continue to have very strong market share in the total crypto assets that we store on our platform and were not seeing assets, move in great numbers to self hosted wallets. We are seeing that, though, and thats an exciting trend because were excited for the growth of decentralized finance and were excited for people to be able to explore nfts, which are largely in defy. But what were seeing is people just moving their money in between centralized crypto, decentralized, crypto and back again and continuing to explore. There has been a flight to quality, so no different than were seeing in the equity markets. A lot more money has moved into bitcoin and ethereum, and away from the long tail were also seeing it in stable coins. Now, where money is flowing more into usdc or binance point as theres been some instability in ust another, but its been a bit of a flight to quality a bit of a flight to liquidity, and those are consistent themes that we see with the broader overall stock Markets, how concerned are you by the way that crypto and bitcoin in particular, hasnt been this uncorrelated asset? That, in large part, was its promise, its true its true weve, definitely seen it trade more in line with stocks and more in line with the nasdaq and tech stocks, in particular over the last few quarters, and i i think that were still learning quite candidly about These correlations as a lot of institutional money has come into crypto and with the broader volatility that were seeing, weve seen strong correlations its been such a short time compared to bitcoins life.
That weve seen this correlation, though i dont know what to call it. I dont know if this will continue or if this will break at some point in time, so definitely correlated over the recent months, but to be determined for the long term. We talk a lot on the show about whether the nasdaq is the dog or the tail relative to crypto or if crypto is the dog or the tail. What are you seeing in terms of leverage in terms of for selling? So we are just a spot market and we do not have leverage on our platform so its hard for me to take a broader view, because we are crypto only and i only see one side of the trade one piece of the market are you buying in This market, given that things are falling, and i know that youre a hodler or a long term holder. Yes, these are great prices to put money to work at. Definitely, yes, shepherd smith.