Coinbase Missing Moment – ​​TechCrunch

Hello everyone, and welcome back to Chain reaction.

In our Chain Reaction podcast this week, Anita and I spoke with Mercedes Bent of Lightspeed Venture Partners about supporting blockchain startups and the future of consumer fintech. More details below.

Last week, we talked about how the cryptocurrency industry needs a moment to reflect on buying the love of its followers. This week, we’re looking at the unfortunate misfortunes of America’s favorite public crypto company.

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Coinbase suspends UPI payments in India days after launch

Image credits: Robert Nickelsberg/Getty Images

the hottest outlet

While cryptocurrency markets have been relatively stable since last week’s bombastic dump-o-rama, gloom was on this week’s menu for institutional investors and retail buyers who prophesied crypto winters falling on every household for years to come.

The message from VCs to crypto startups and mega corporations has been “cut the fat” — a statement that doesn’t sit well with the lavish launch parties and plans to quintuple hires that many founders appeared to be working on in the past month. It’s been an unprecedented boom period for cryptocurrency startups, but life has been looking a little less pleasant for Coinbase since Bitcoin and public markets hit their frothy peak in November last year.

Coinbase is currently trading below $65 a share, following a decline of more than 80% from its all-time high in November. Many other public market tech stocks are also feeling hurt, but in terms of the revenue Coinbase made last year, it’s clear that investors have exceeded their expectations for the company’s future performance. Coinbase earned $7.4 billion in net revenue in 2021 and currently has a market cap below $14 billion. This is madness.

Public market investors may not have the most optimistic view of Coinbase, but the question is how it really affects the company. Well, the company is adjusting its growth expectations for one thing. COO Emilie Choi announced this week that the company was slamming on the brakes: “Earlier this year, we plan to triple the size of the company. Given current market conditions, we think it’s prudent to slow down hiring and reassess…”

That’s to be expected, but it’s not great for a company that has multiple competitors full of cash, all chasing their market share. The company has been diversifying its offerings looking to leverage its network and provide yet another browser for the nascent web3 world, but it’s unclear what kind of consumer capture the cryptocurrency world is looking for next year compared to the last couple, something that left the company in a pretty bleak position for the short term…

the last podcast

Hi I am Anita, here to give you an update on our latest episode of Chain Reaction, where we unpack the latest news from web3, block by block for the crypto-curious.

In this episode, we talk about 30-year-old blockchain billionaire Sam Bankman-Fried (SBF) buying a 7.6% stake in Robinhood and what he could be planning to do to help turn the stock around amid a difficult first half. We also explain the difference between custodial and non-custodial wallets as Robinhood just announced is releasing the latest — the latest in a series of new products aimed at attracting more users to its platform.

Since we’ve talked about Robinhood, we’ve had to look at what’s going on with its competitor, Coinbase, which said this week that it would be scaling back its hiring plans because of the cryptocurrency market crash. We also gave listeners an update on the latest with the disgraced UST – the stablecoin that (sort of) started it all.

Our guest this week was Mercedes Bent, an investor at Lightspeed Venture Partners who helped us unpack the loaded term that is the “metaverse” and talked about some of the long-term potential she’s seeing in industries like web3 video games.

Sign the Chain Reaction in Litter, Spotify or your alternative podcast platform of choice to follow us every week.

Anita Ramaswamy

follow the money

Where startup1 money is moving in the cryptocurrency world:

  1. BitKeep cross-chain wallet deposits $15 million from Dragonfly
  2. Coinshift, treasury management startup, receives $15 million from Tiger Global
  3. Cryptocurrency Startup TipTop Raises $24M from a16z
  4. Social startup Web3 CyberConnect earns $15 million from Animoca and Sky9
  5. Smart contract security startup Certora earns $36 million from Jump
  6. Encode Club for Crypto Education Raises $5 Million from Galaxy Digital and Lemnis Capital
  7. Crypto games co Metatheory deposits $24 million from a16z
  8. DAO Seed Club Investment Receives $15M from Union Square Ventures, Others
  9. Cryptocurrency Investment Firm Elwood Technologies Receives $70 Million From Goldman Sachs
  10. Web3 Gusto Collective Studio raises $11 million from Animoca


Animoca Brands Plans to Add Education to Its Multi-Billion NFT and Gaming Business

Animoca Brands has become one of the biggest companies in the world of the metaverse, games to win and NFT, but its co-founder Yat Siu told TechCrunch that there is a new industry the company wants to enter: education. No, not education on cryptography topics, but more general educational tools that can be applied to more than one discipline. Siu said he hopes to boost the teachers’ economy with a “learn to win” or “teach to win” model, so that teachers and students’ time can be rewarded in the form of chips or cash. This boost could be a new wave for the crypto ecosystem to implement additional ways to earn rewards.

Jacquelyn Melinek

Thanks for following along and get Chain Reaction in your inbox every Thursday by subscribing to the TechCrunch newsletter page.

Lucas Matney

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