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Bitcoin price is down more than 10% while Ethereum price is faring even worse, in part because investors are betting that some smaller cryptocurrencies could supplant Ethereum.
Now, as crypto traders scramble to get ahead of an impending “hundred-pound gorilla,” the chief executive of major crypto exchange Coinbase
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“I can’t tell you what the world will look like in a year,” said Coinbase CEO Brian Armstrong. CNBCwarning that crypto exchange fees will decline, putting pressure on Coinbase’s results as an exchange fee war that began earlier this year escalates.
“I think there’s going to be some margin compression, eventually it has to happen at some point because whatever we build, you know, others, eventually you’re going to build it and it will become a bit more commoditized. “
Coinbase, perhaps the world’s largest crypto on-ramp for new users, has struggled since debuting on the Nasdaq last year near the peak of rising bitcoin, ethereum and of cryptography. Coinbase shares are down around 80% from their all-time high as trading volumes fall along with the price of bitcoin despite signing a potentially massive $10 trillion crypto game changer earlier this month -this.
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However, Armstrong, who founded Coinbase in 2012, remains bullish, saying the company has weathered similar price declines in the past.
“We have this saying internally, I like to repeat a lot, which is, it’s never as good as it looks, it’s never as bad as it looks,” said he declared. “I think one of the reasons Coinbase has been so successful over the past 10 years is that we just try not to focus on short-term ups and downs.”
Other bitcoin and crypto market watchers, however, are struggling to remain optimistic, with one analyst pointing to a collapse in sentiment.
“With treasury yields rising again, sentiment deteriorating, prospects for further equity declines, and a still-high correlation between crypto and the general market, it’s hard to be optimistic,” he said. Rafal Tworkowski, market analyst at currency trading platform Conotoxia, in emailed comments.