The rollercoaster ride that was 2022 saw the cryptocurrency market lose a staggering $1.6 trillion from its total market cap. Yet this dramatic downturn did not prevent executives at Coinbase from reaping substantial rewards. An SEC filing revealed that, with the exception of CFO Alesia Haas, all Coinbase executives received higher salaries in 2022 compared to the previous year. CEO Brian Armstrong’s total compensation reached $7.4 million, although $6.3 million was attributed to personal security costs. Meanwhile, COO and President Emilie Choi took home $23.4 million in total remuneration.
Despite these positive figures for Coinbase executives, the company posted a loss of $2.6 billion in 2022, as disclosed in its Q4 2022 earnings report. Challenges faced by the crypto market were acknowledged by Coinbase, who said: “To state the obvious, 2022 was a challenging year for the crypto market and our transaction revenues.” As a result, Coinbase stock experienced a decline, falling to $60 a share from a 52-week high of $116.
Coinbase’s troubles were not unique within the crypto industry. In 2021, the sector encountered numerous obstacles, including the depegging of algorithmic stablecoin Terra, the bankruptcy of three crypto lenders (BlockFi, Voyager, and Celsius), and the downfall of FTX. Consequently, Coinbase was forced to lay off 950 employees in January, followed by a further 18% reduction in June.
However, amidst the turmoil, certain cryptocurrencies have shown resilience. Recent analysis suggests that 20% of the 160 examined crypto assets have seen growth in their market values. Furthermore, Coinbase’s Q1 report revealed a smaller net loss of $79 million compared to last year’s figures, indicating an “efficient and financially disciplined” approach moving forward.
Although many are adopting a bearish outlook on the crypto market, it would be unwise to dismiss the potential for recovery. Coinbase’s performance, as well as progress in selected cryptocurrencies, offers a semblance of hope for those who believe in the technology and its potential. While the tumultuous nature of the cryptocurrency landscape continues to captivate, it remains vital for investors and enthusiasts alike to stay informed and diligent in their decision-making process.
Source: Blockworks
