Coinbase proposes to launch a subscription service that will allow users to trade commission-free with a subscription

Owen Lau said: "This would significantly reduce the high volatility of the company's earnings going forward." "In my view, this is a positive factor for scaling up, transaction volumes tend to be highly unpredictable and Coinbase currently derives most of its revenue from transaction fees, although it has been working to expand ways to diversify revenue."

Coinbase is understood to announce its quarterly results after the bell on Nov. 9. Analysts generally expect the company's third-quarter revenue to post a double-digit YoY decline due to a plunge in the price of bitcoin in the second quarter, which led to lower trading volume and active users in the third quarter. Analysts now generally expect the company to report third-quarter revenue of $1.58 billion, down nearly 30 percent sequentially, and earnings per share are expected to come in at $1.72.

Owen Lau said Coinbase could start by offering a subscription service to some of its lower-frequency trading users to ease the pressure on the company's revenue growth. "If it tries to ask users who trade frequently, then the company will lose a lot of transaction fees as a result. I believe Coinbase will slow down and try to run a pilot service first to see if a subscription fee makes sense."