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Fast growth in the past years has given cryptocurrency exchange Coinbase some additional challenges, according to its Chief Executive Officer Brian Armstrong.
In a new statement, Armstrong talks about the unwanted consequence of losing on efficiency as a result of rapid upscaling, something that affected his firm. He said:
“While this trajectory is natural, it is not inevitable. Every great company, from Amazon to Meta to Tesla, found ways to retain their founding energy in conjunction with appropriate controls, even as they scaled to be much larger than Coinbase is today. Great companies maintain their insurgent mindset, for fear of becoming complacent and irrelevant over time.”
Coinbase will take some time to get its things in order and bring back its focus on the customers, Armstrong said. Nevertheless, this will affect growth and employee numbers:
“That’s why we’re focusing on driving more efficiency at Coinbase. After 18 months of ~200% year-over-year employee growth, many of our internal tools and organizing principles have started to strain or break. So we’ve been digging in to identify the set of changes we need to make to help us succeed at this new scale.”
The Coinbase CEO added that there will be some significant changes made in the company. This will include the decision-making process and reorganization of team structures and incentive programs.
Furthermore, the Nasdaq listed crypto exchange Coinbase will bring back its pioneering startup mindset and ban unnecessary meetings in favor of its core product and services. Armstrong said:
“Coinbase’s success has always been rooted in an ability to operate efficiently with a startup mindset. Now, as we adjust to our new scale, we need to get back to the things that made us successful, to drive more efficiency and shake off the complacency that can creep into a bigger company.”