High of Thoughts: Staying Targeted Throughout Market Downturns | by Coinbase | Could, 2022


By Brian Armstrong

Sharing a be aware I despatched to the Coinbase workforce final night time.

We’ve got a cultural norm to not talk about brief time period inventory value fluctuations, however I’m going to interrupt our norm on this case given the wild volatility we’re seeing. I notice it may be scary to see our inventory value down with related damaging headlines. In fact, we aren’t alone, and there’s a broader market downturn as properly which provides gas to the hearth.

In occasions like these we have to step again, and zoom out. Nothing about Coinbase modified this week, we’re the identical firm we had been yesterday, or a yr in the past. If something, we’re in an excellent stronger place given our stability sheet. This final bull cycle has generated super revenue and money that provides to our resiliency, and we’ve got constructed an unimaginable workforce with among the greatest expertise on this planet.

Volatility is inevitable. We are able to’t management it, however we do plan for it. By the ups and downs of crypto during the last 10 years, Coinbase has centered on constructing. By the highs we get to deal with scaling and plenty of new folks get launched to crypto. By the lows we get to deal with innovation and paying off tech debt.

I don’t understand how lengthy this down-cycle will final, or if we’re on the backside. I simply know that we are going to make it by means of to the opposite aspect, and we come out stronger than ever if we deal with what issues: constructing.

Tomorrow we’ve got our bi-weekly city corridor, and we all know staff have questions. We’ll handle essentially the most frequent questions we’re listening to. We can even handle the general public concern a couple of disclosure we made in our 10Q submitting, which I tweeted about yesterday, as properly.

See you all tomorrow,

Brian

P.S. I’m attaching a be aware I despatched to the corporate proper after we went public:

Crew,

Congratulations on an unimaginable week! It’s arduous to consider how far Coinbase has are available slightly below a decade. Some of the difficult elements about working on this business is managing by means of the highs and lows of crypto cycles. Whether or not that is the primary cycle that you simply’ve seen up shut, or your fourth, it may be emotional to see important value adjustments, together with how they’ll alter the exterior perspective on our business. Prior to now, we simply had crypto costs to observe. However now, we’ve got a brand new value to observe: our share value.

This second proper now feels nice. We’re a public firm, we’re worthwhile and crypto is the new subject. However with that pleasure comes lots of hype and excessive expectations that may sometimes result in over-exuberance, together with round Coinbase itself.

It’s essential that we don’t let exterior noise set the flawed expectations for what success seems like. Whereas I’m definitely pleased with what we’ve achieved, and excited to see a lot curiosity in crypto, it’s essential to disregard the hype and deal with what we will management. We aren’t our inventory value, or the value of bitcoin. Sustaining our deal with the long-term mission, no matter what the world is doing round us, is the one approach we’ll succeed with ambitions as giant as ours.

I personally plan to not have a look at the inventory value aside from uncommon cases resembling quarterly earnings calls, or as wanted to debate worker compensation issues. So I’d wish to take this second to ascertain a brand new cultural norm, which is that we are going to not talk about brief time period inventory value fluctuations within the regular course of enterprise. I feel it’s extremely essential to maintain a transparent thoughts, and deal with what issues over the long run, and hopefully this can assist us try this.

Let me share a fast story about numerous staff who joined on the peak of the 2017 bull run. They thought they had been becoming a member of a rocket ship that was solely going a method: up. A lot of them had been upset and a few even left after issues trended down for a yr or two. However should you zoom out to a 3-year timeframe, staff who stayed had been extremely properly rewarded. The identical is true for those who bought crypto on the peak of the 2017 bull run and held. It took actual conviction and long-term perspective to stay by means of the crypto winter (particularly when others stated it was silly), even when now it appears so clear in hindsight. There’s a actual artwork to tuning out all of the noise on this planet, and specializing in the uncommon little bit of sign which helps you develop your individual convictions.

Each up and down markets are useful for their very own causes. The down markets deliver a deal with innovation, and the brief time period thinkers are inclined to get distracted and go away the ecosystem. In up markets we get to deal with scaling, and a large wave of adoption introduces crypto to extra folks for the primary time. Each time a brand new hype/despair cycle emerges, my important takeaway is to be grateful that we endured by means of the final one with our long run pondering.

We have to be certain we don’t let the present hype get to our heads. On the finish of this cycle we may even see crypto costs or our inventory value fall, and a few folks will develop into disillusioned and stroll away from crypto once more. We might want to ignore that volatility and maintain making ahead progress on our long-term targets no matter what the market is doing that day.

In case you can’t ignore the hype whereas issues are trending up, then you may’t ignore the despair when issues are trending down. Keep robust, maintain a long run perspective, and let’s maintain constructing.

Have a terrific weekend!

Brian





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