Coinbase is an extremely profitable company. I don't think any VC advice applies to them. I think their valuation just got way out of hand, and with the crypto bear market just getting started I imagine they'll downsize like this during every cycle to come.
They burned almost a billion dollars in operating cash flow last quarter, and nearly all of their profitability in the past flowed from retail, which has shifted down dramatically. Not quite as simple as extremely profitable.
Profitable, yes. Sustainable, probably not. They are scrambling to open up lines of stable revenue that they can rely on once crypto mania starts dying down (and that is already happening to some degree).
