Coinbase blames falling crypto volume for falling income

Coinbase suffered strong losses in the third quarter of revenue and trading volume, since the washing out of Bitcoin and other digital assets turned the fate of the once rapidly growing cryptocurrency exchange.

The company listed in the USA confirmed "another hard quarter" because it reported a net turnover of $ 576 million, a decrease of more than $ 1.2 billion in the previous year and $ 803 million in the previous quarter. Coinbase lost $ 545 million in a quarter, compared to a net profit of $ 406 million in the previous year.

The slump in cryptoma markets at the beginning of this year continues to demand its tribute of trading places such as Coinbase. Token like Bitcoin and Ether have lost about 70 percent of their value since their all -time high last year. The trading volume and the monthly users at Coinbase decreased by 27 percent and 6 percent from the second to the third quarter.

The lintel was followed by a ride bound trade for popular crypto tokens. The latest figures from the data provider Cryptocompare show that the average annualized volatility for Bitcoin has reached the lowest level since October 2020. Coinbase has again put pressure on the lack of price actions, which described the volatility of crypto-assets as the "key driver of our retail volume". In a shareholder letter.

"This was a very difficult quarter for coinbase because macro and crypto counterwind are in the foreground. The user base goes back, and that's not a picture book quartal for the street," said Dan Ives, Senior Equity Analyst at Wedbus Securities.

Coinbase announced in June to reduce almost a fifth of his workforce, which corresponds to more than 1,000 employees. The then CEO Brian Armstrong admitted that the stock exchange was "too fast" and that 2021 had completed with over 3,700 employees. As part of the strong withdrawal, job offers were also withdrawn on the stock exchange.

At the beginning of this week, Surojit Chatterjee, Chief Product Officer from Coinbase, said he will step down and said: "Now it's time to get away from the journey and get to breath". Chatterjee will continue to act as an Armstrong consultant.

Coinbase also cited "macroeconomic factors" and "geopolitical factors"- including the war in Ukraine- that heavily burden the financial and cryptoma markets.

"Krypto tried to distance himself from the mainstream economy by claiming that Bitcoin was a protection against inflation and that Krypto would almost continue to exist in his own bubble," said Charley Cooper, Managing Director of the Blockchain Group R3. "I think it is important to put it in the context that the cryptocelt is increasingly being influenced by the broader world of the economy."

The assets on the coin base platform rose to $ 5 billion to $ 101 billion compared to the second quarter. Despite a difficult financial year, an agreement with the Blackrock asset management group was agreed in August in August to enable more seamless access to the markets for digital assets. The step - which was seen as a victory for Coinbase - was considered a sign that the institutional appetite for digital assets remained despite the drop in prices.