Coinbase does not close the stacking service

Jun 08, 2023
The American crypto exchange will continue to operate the cryptocurrency stacking service despite SEC lawsuits due to a number of violations, including the sale of unregistered securities.
image

Coinbase CEO Brian Armstrong said at the Bloomberg Invest conference that the crypto exchange does not plan to curtail the staking service, since this service accounts for about 3% of the company’s total revenue. According to Armstrong, while there is no court decision, the exchange has legitimate grounds to continue its activities.

The Coinbase staking service is the basis of the company’s strategy to diversify its revenue base. In 2022, over 90% of the company’s revenue came from transaction fees. Currently, the company’s profits have fallen due to the prolonged bear market.

Armstrong is confident that in the current situation, the exchange’s customers have nothing to fear, because according to the auditors, Coinbase will not face a massive withdrawal of funds, as it happened in other companies.