Coinbase Loses More Than Expected Quarterly In Crypto Recession

The slowdown in cryptocurrencies has had a bad effect on crypto exchanges including investors. Due to this, the quarterly loss of Coinbase Global has been more than expected. The exchange has reported a huge quarterly loss. This was due to the investors staying away from riskier assets. Shares of Coinbase Global fell 6 percent on Tuesday.

The trading volume of the cryptocurrency exchange fell by more than half in the second quarter of the year to reach $217 billion (approximately Rs 17,25,130 crore). Of this, retail lost 68 per cent and institutional trading lost 46 per cent.

Coinbase has said that trading volumes may drop further in the current quarter. It tells how bearish the crypto sector has been due to the collapse and sell-off of some crypto projects. The recession pushed bitcoin down by as much as 50 percent in 2022, and many companies, including Coinbase, had to lay off their employees. Coinbase said its monthly user base that transacted in the April-June quarter fell by 2 percent to reach 9 million.

Michael Miller, equity analyst at Morningstar Research, said that there hasn’t been much migration to Coinbase’s user base that users have left the platform. But its users have become sluggish in crypto investments. He further added that this could put pressure on the exchange’s earnings as the company generates most of its revenue from its trading fees.

According to Refinitiv data, the analyst had expected the company’s adjusted loss to be $2.65 (approximately Rs 210) per share but it rose to $4.76 (approximately Rs 380) per share and revenue fell by 63 per cent.

Download the Gadgets 360 Android app and follow us on Google News for the latest tech news, smartphone reviews and exclusive offers on popular mobile phones.

Related news

Leave a Comment