Insights on Coinbase

By Talia Tan

The Experience+ Series is a series of online learning journeys and industry visits, sponsored by Workforce Singapore, which gives students the chance to virtually visit workplaces, speak directly with working professionals, and learn more about the organisations they aspire to join.

On 15th June 2022, Advisory hosted Experience+: Coinbase, the 5th edition of the Experience+ series. Participants benefited from panel discussions, small-group networking with Coinbase professionals, as well as an exclusive introduction to the basics of cryptocurrency and current regional market trends. We were privileged to have heard and gathered insights from:

Winnie Tan, Institutional Support Analyst, APAC
Terence Yeo, Director, Market Expansion – APAC
ShanShan Guan, Senior HR Business Partner, APAC & EMEA
Peter Di Pietrantonio, Senior Director, APAC Marketing
Nicholas Tan, Technical Recruiter, Singapore
Kai Li Oh, Institutional Account Manager, APAC
Hassan Ahmad, Regional Director, Southeast Asia and Country Manager – Singapore
Gerald Lonlas, Engineering Manager
Seah Eng Chye, Institutional Support Analyst, APAC
David Ko, Senior Director, Engineering
Andrew Tan, Senior Recruiter, APAC
Aaron Thian, Institutional Support Analyst, APAC

Our selected participants included students from various education levels and institutions with a shared passion for cryptocurrency and the financial technology industry, and a common interest to position themselves for available opportunities at Coinbase and in the industry.

Below are some key points shared during the session:

Overview of Coinbase

Driven by the mission of increasing global economic freedom – through a fair, accessible, efficient, and transparent financial system – Coinbase provides a myriad of cryptocurrency products to users. One such example is the Coinbase App, which allows users to buy, store and trade different cryptocurrencies. Amidst the increased uptake of cryptocurrency, Coinbase has successfully cemented its position as a leading cryptocurrency firm by partnering with prominent players such as Dell, Expedia, Time Inc. and Paypal. Valued at nearly $50 billion in 2021, Coinbase has noteworthy investors such as ARK Investment Management and JP Morgan. As a leading cryptocurrency company, Coinbase offers a multitude of career opportunities such as business operations and engineering, and is focused on developing new solutions for the FinTech scene.

Outline of Crypto Basics and Key Trends

Cryptocurrency is a form of money backed by mathematics and electricity instead of governments and central banks. The basis of this digital money ecosystem lies in the blockchain, which is a ledger that can be inspected and verified by anyone. This allows decentralised transactions to take place. As users from around the globe can participate with just an internet connection, cryptocurrency is also portable and provides open access to all. Hence, cryptocurrency is suited to take on the notion of digital property rights in a decentralised Web.

Cryptocurrency is often mentioned in relation to the rise of Web 3.0, where parts of the Internet are verifiably owned by users instead of corporate entities. Crypto can be integrated into the Web through four different layers. The first layer is the access layer, which are entry points for users to access Web 3.0 technologies. This includes cryptocurrency wallets, browsers, and Web 2.0 platforms like Reddit and Twitter. The second is the use case layer, which is the user interface for interacting with the protocol layer (explained later). Use cases include gaming, non-fungible tokens, and financial services. The third is infrastructure or category primitives, which are interoperable building blocks that can be combined to create applications. The last is the protocol layer, which refers to the underlying main blockchain architecture.

South-east Asia Highlights

Despite boasting a user base of over 98 million users in over 100 countries, Coinbase is actively pursuing expansion in the Asia-Pacific. This region has a total population of around 650 million consumers, with 200 to 250 million of them being digital currency users. Cryptocurrency users currently number around 30 million. Coinbase aims to elevate the saturation of cryptocurrency users to equal digital currency.

South-east Asia is an attractive region for cryptocurrency companies as it has a large total addressable market with a large number of consumers. Furthermore, there have already been various FinTech efforts to deliver financial services to the unbanked population. Many South-east Asian markets like the Philippines and Thailand possess greater regulatory clarity as they were among the first few to adopt a cryptocurrency licensing framework. Additionally, consumers in the region have shown to be crypto-leaning, with the development and high adoption of new use cases like Play-to-Earn games and non-fungible tokens. Coinbase monitors the shifting cryptocurrency legislation across all key South-east Asian markets to figure out how to meet regional demand.

With the increasing popularity of cryptocurrency and blockchain technology, what are some of the opportunities that may arise in the future with regards to its applications? How will these impact Coinbase’s service offerings?

Crypto has gone from stored value to applications in payments and decentralised finance (DeFi). Blockchain technology is used to manage financial transactions, including investments and yields (returns on investment). Most recently, more modern applications of crypto have emerged in online games and non-fungible tokens (NFTs). It is clear that cryptocurrency provides broader solutions beyond finance. Coinbase aims to seek stable use cases, then invest in them to create products that deliver the best customer experiences. One example of a current strong use case that Coinbase has invested in is crypto wallets. Coinbase wishes to embark on new ventures related to crypto usage in apps.

In light of the disparate stances adopted by different countries towards cryptocurrency, with China banning cryptocurrency trading and El Salvador being the first country to accept cryptocurrency as legal tender, what does this mean for Coinbase and the broader crypto industry?

Banks tend to have a global operational set – they span entire regions. Coinbase offers many kinds of products to corporations and financial institutions, giving them exposure to crypto as an asset class. Approaching regulation from a client perspective, global operations are disrupted by jurisdictions. So a company that is headquartered in China may have to shift their operations to countries with friendlier stances towards cryptocurrency, like Singapore or Hong Kong. From the point of view of a cryptocurrency firm like Coinbase, when regulations are released or tightened, where can the firm operate, and what services can they offer? As the largest listed crypto company, Coinbase also holds a unique responsibility to abide by regulations, and to be transparent in their practices. Close relationships with regulators are essential for growth, so regulation must be approached in a supportive and compliant manner. Additionally, Coinbase is placed in a thought leadership position. With cross-sharing across different positions, existing relationships with regulatory bodies can allow policymakers from other countries to reference existing regulations and mirror policies.

In view of the excessive volatility of the crypto market, how has this affected Coinbase’s operations and offerings?

Coinbase handles the volatility of the crypto market with an approach that consists of a long term mission and short term priorities. In terms of our long term mission, Coinbase aims to grow the crypto economy and increase the depth of current Web3 offerings. We believe that there is a huge opportunity for the cryptocurrency economy to grow, and for service offerings to become more diverse. Developer enthusiasm is only growing, and institutions are coming on board too. As for short-term priorities, Coinbase pursues markets with a lot of potential for growth, shoring up revenue while remaining fiscally prudent. In order to deal with volatile market conditions, one must constantly get new information, and be agile in making challenging decisions.

What is it like to work at Coinbase?

As an analyst, there are different categories of daily activities to engage in. You perform your core functional role, with designated focus hours to do work and analysis, or liaise with stakeholders on project group calls. Since stakeholders are often located across regions, there are valuable chances to gain global exposure. Coinbase also has a “catch-up” culture, where employees are encouraged to maintain connectivity with coworkers via social events. There are opportunities for external engagement too: community engagement, roadshows, expos and NFT meetups all contribute to the improvement of Coinbase’s presence in local markets. Additionally, Coinbase allocates a stipend for learning and development. We organise DeFi lunch talks, crypto/Web 3.0 slack channels, and CryptoU (a structured training module within the firm that is designed to allow crypto users to familiarise themselves with crypto knowledge).

What skills should one possess to pursue a career in crypto?

You have to be able to demonstrate that you are truly interested in this space. For instance, you can try to create an actual governance proposal on Snapshot, mint your own NFT, or write about projects and publish them on recognized platforms. Even an interest in Web3 gaming is a viable way to show your interest. Crypto has become so multidimensional that different use-cases are applicable to each individual. For a basic introduction to the crypto space, books to read include “Mastering Bitcoin” and “Mastering Ethereum” by Andreas M. Antonopoulos.

What is the most interesting or challenging aspect of the work at Coinbase?

How do we achieve international expansion, especially when countries don’t have friendly regulatory postures towards crypto? Vietnam does not have a licensing framework, which means that it is unregulated – banks and wallets are pressured not to support crypto. Do we want to enter the market given regulatory requirements, and how do we want to do that? A possible approach is to try entering the market via different products.

As for the most interesting thing about working in the crypto space, tech firms have a radically different kind of culture. Big banks are mature and more ironed out. In comparison, at tech start-ups you can accelerate your learning in a way that is hard to replicate elsewhere. You get to wear many hats and take on different responsibilities. Being at early stages of a technological paradigm shift made joining the crypto space really exciting.

Data sharing between consumers and businesses helps ensure safety as the fundamental backbone of mobility and optimise supply and demand in a holistic manner. This allows ride-sharing services to be conducted safely. As the need for working from home increases, mobility is bound to be affected to a certain extent as there is a shift in normal commuting hours. Hence, the demand for transport as a whole will be more spread out as working from home will become Singapore’s new norm.

What kind of degrees and courses will you need to enter this line of work?

Qualifications to work in the transport industry can vary. Regardless of the major you choose to pursue, focus your attention on the process instead of solely focusing on the end result. Depending on the sub-sector of mobility, you can build your career in a certain field where you can maximise your full potential. Learn because you have a passion for it and passion will bring you to great heights.

Coinbase is a remote-first company. When interacting with clients, is it mainly mediated through Zoom? Does that pose a challenge to building relationships?

Coinbase clients are not always based in the same country, so there may not be the chance to meet face-to-face either way. However, the remote-first approach refers more to Coinbase’s working culture. Some may prefer to meet face-to-face when dealing with clients, as it allows for better communication. Zoom may not be as ideal as it reduces the informal and more insightful dialogue from face-to-face communication.

What do firms in the FinTech industry look for when hiring?

When technology firms hire, they often try to find people with domain expertise. This refers to one’s skill sets, which can include relationship management and the ability to be client-focused. The biggest challenge, however, is to find people who match the culture of FinTech firms. Workers have to be okay with being constantly challenged, and they must be eager to learn.

Do you have any advice for anyone starting out in the workforce, especially in gaining technical knowledge and figuring out their strengths at the workplace? Is there a way to accelerate this process?

There is a need to be aware and observant. One can speak to colleagues to gain a better understanding of company values and the ways they can contribute effectively to the company.

Another way to bring value is to specialise in the subjects one is working in. Knowledge of one’s department and consistent upskilling is essential for those who are starting out.

As the youngest in the firm, one has the advantage of not being knee-deep in work. Hence, one has the time to look at new trends. One can then offer opinions on the cryptocurrency-related habits of Gen Z and Gen Y consumers, such as how even teenagers are engaging with GameFi projects.