Coinbase, Emily Choi, Emily Cheng discussed on Bloomberg Wall Street Week


Off with crypto been some problems with some cryptocurrencies lately But it has been a huge year for coinbase Yeah hard to believe the nation companies direct listing was just in April An Emily Choi president in chief operating officer of coinbase tells Bloomberg's Emily Cheng crypto is on pace to hit a billion users in the next 5 years So she kicks things off here at the Bloomberg technology summit talking about how much coinbase has grown Yeah I can't believe we went public this year either I was thinking about it I was like asking somebody I was like do we have public this year What was the last year It's all a blur I think this was definitely a breakout year for crypto And it was kind of cool to just see how everything evolved So from our perspective I think this was the year that institutional finally really broke out It was something that had been discussed for so many years And we found institutions actually participating actively and growing in a space this year DeFi another huge trend I think we're now at a 150 billion of DeFi value in the market and that was a number close to zero not too long ago NFTs was obviously a big story for the year And then I think for us just being the first major crypto company to go public was kind of a watershed event for the whole community I think And so that was very special as well So everyone wants to know about the price Are we heading into a crypto winter You and I have talked many times over the last year you always say crypto is a roller coaster Is a roller coaster taking us into the winter We do not make any predictions about winters or summers What I will tell you is that everybody who kind of disproportionately benefits from crypto tends to just ride it out on the long term and beholders throughout the ups and downs It's definitely not for the faint of heart The thing with the winters is the OGs in the space absolutely love the winter Like Brian Armstrong loves a winter And the reason that they love the winters is frankly the fakers get out of the space the builders keep building They can focus without all the crazy hype around The fakers Well you know what you'll see is that they're in whatever the next winter is There will be companies that talk to big game about crypto but then we'll pull out And that's great because it means that the mission oriented companies and the mission oriented builders will stick through it and get disproportionate value as crypto Bros For coinbase the thing I learned was that we took advantage of these downturns to buy to go me which was the foundation for a prime brokerage We bought zappo which was the foundation for us to be the largest crypto custodian in the world So we tend to double down during those times when everyone else is fearful So talk us a little bit about how crypto crypto winters work because as you say you know a lot of new investors are here and especially over the last couple of years A flood of new investors think it's carrot they go away they don't understand the cycle How would you describe the cycle and what to prepare for I would describe this cycle as basically every cycle of crypto There's been a new high and then there's a low And with that low there's actually a higher trough So if you look at it on a short term basis what happens is it looks like oh my goodness it's crazy And then if you look at the long-term it's smooths out and then it creates this new higher higher peak every time And so it's just one of those things where you have to truly believe in the idea that long-term And if you stick through it it's great If you're a short term investor it's probably not a great thing Coinbase just raised a lot of money via bonds over the fall Is that coinbase preparing for the crypto winter We see so much opportunity I think the biggest struggle we have as a company is that we see no dearth of opportunity From M and a to organic investment and we're now at 3000 plus employees and so we just want to be able to as I mentioned take advantage and double down when we see these incredible opportunities and that includes everything from international to just the upper case we're seeing within our core business Last week alessia house your CFO said at the crypto regulatory hearing on Capitol Hill that coinbase now stores about 12% of the world's crypto assets That is huge How much bigger can coinbase become and how fast I think that we can become bigger and bigger and bigger I think that we have opportunities on multiple fronts of the business to become bigger and bigger and bigger And I think that the 12% is representative of the kind of trust that we have And this goes to the zappo acquisition that I was mentioning We bought zappo because we recognized that that was a very unique asset doubling down on this store of crypto that this custodian had kind of accumulated over time And that helped us create the foundation to continue to build this custody And so when you think about that the 12% number to me conveys the trust that both our retail and in social investors have in parking their assets at coinbase It seems like legislators are paying attention to crypto but there is not broad agreement in any way shape or firm about how crypto should be regulated What was your takeaway from that hearing I was very optimistic after that hearing If you heard the tone and tenor it was so positive and it was almost the acknowledgment that the U.S. is so behind the times in terms of approving a Bitcoin ETF in terms of the innovation that's starting to go offshore And so I felt like it was this reckoning almost like an acknowledgment that we need to make sure that innovation and entrepreneurship happens the United States And that was Emily Choi president and chief operating officer of coinbase with Bloomberg's Emily Cheng at the Bloomberg technology summit.

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