Despite having no physical headquarters, Coinbase is a publicly traded company. All of their employees work remotely. The company is run by its founder and CEO, Brian Armstrong, who has created a platform that allows users to buy and sell various cryptocurrencies. The company has been around since 2012 and has grown into a successful company. However, trading revenue has declined approximately 50% from last year.
Trading revenue has declined approximately 50% or more compared to last year
During a recent interview with Bloomberg TV, Coinbase CEO Brian Armstrong revealed that trading revenue from the company has declined by more than 50% compared to last year. He claimed that the crypto market has hit a downturn, which has decreased the number of users and caused a decline in transaction volume. He also said that this year’s revenue could be cut by half.
As of the end of the third quarter, Coinbase had 8.5 million monthly transacting users. That’s a drop from the 9.2 million users it reported in the previous year. And a decline from the 9.6 million users analysts expected the company to have in the third quarter.
In terms of assets on the Coinbase platform, the company said that its total was $101 billion at the end of the third quarter. That’s up from $90 billion at the end of the second quarter, but down from $103 billion at the end of the first quarter. That’s because a number of investors have withdrawn from the crypto space. In the third quarter, the percentage of assets made up by Bitcoin was 39%. And the percentage of assets made up by Ethereum was 24%.
Overall, the company’s net loss for the third quarter was $540.6 million. That’s a wider loss than analysts expected.
Bank of America’s downgrade could cause a colder crypto winter
Whether or not the FTX crypto market implosion will cause a colder crypto winter is up for debate, but a Bank of America research report suggests that crypto may have hit a wall. The report finds that crypto assets are shedding more than $2 trillion in value over the past year. Although the crash is not expected to be as traumatic as the dot-com bubble of the early 2000s, the effects are still felt by the top digital asset brokerage firms.
The market may be down, but Coinbase has survived the FTX fiasco by a few notches. The crypto startup’s most recent layoffs may not be the end of the rainbow for investors, who have seen the stock drop from a high of $50 to a low of around $45 today. Despite these recent setbacks, the company is still the world’s largest cryptocurrency exchange. It was also one of the first to list its new stablecoins on the public trading floor.
The hyped-up Coinbase hasn’t done particularly well since its IPO, and its stock trades at a discount to its market capitalization. However, its latest quarter showed a 9% increase in the number of active users and a 10% growth in crypto transactions. The company has since announced a delay for a major stablecoin project and a drop in deposits.