Coinbase’s trading volumes fell more than 40% in the first quarter, as worse-than-expected earnings and its bleak outlook highlighted the fallout Crypto Bear Market.
Shares of the largest cryptocurrency exchange in the U.S. fell more than 15 percent in after-hours trading, after the company reported net losses of $ 430 million, well above the $ 47 million analysts expected on Wall Street.
Revenue fell 35 percent year-over-year to $ 1.2 billion, missing analysts’ expectations of $ 1.5 billion.
The company, which Went out to the public In April 2021, he blamed “continued… A trend of lower crypto asset prices and also of volatility that began in late 2021”, adding: “We believe these market conditions are not fixed and we remain focused in the long run.”
Trading turnover fell by 44% compared to the previous quarter, which she said “is compatible with the broad crypto spot market”.
Bitcoin, the most popular cryptocurrency, has fallen more than half its value since its peak in mid-November during what has come to be known as the “Crypto Winter.”
The results are in stark contrast to Coinbase’s previous gains during the bull market last summer, when its gains exceeded those of the larger and more established exchange operators, including CME Group from Chicago and the Intercontinental Exchange in the second quarter.
In response, Coinbase sought to diversify its business, launching a The market of tokens that cannot be changed Last week in an attempt to challenge the lucrative market established by startup OpenSea. It has also examined other proposals, such as crypto derivatives.
In its forecast, the company said that the volatility of cryptocurrencies and cryptocurrencies prices declined in April, and it expected users and trading volume to decline in the current quarter compared to the first quarter.
She signed her shareholders’ letter with #wagmi – a popular acronym for the crypto community for “We’re all going to do it”.
Coinbase trading volumes plummet as ‘crypto winter’ sets in Source link Coinbase trading volumes plummet as ‘crypto winter’ sets in