One of the leading U.S. cryptocurrency exchanges Coinbase presented a financial report for the third quarter of 2022.
The firm’s income collapsed by 28% compared to the second trimester and amounted to $ 576 million. From July to September the company suffered operating losses of $ 545 million. Despite the drop in revenue, the company managed to halve the amount of losses, reducing costs.
In the second quarter of 2022, the number of active users of the exchange decreased by 6% to 8.5 million and the volume of trading fell by 27% to $ 159 billion. However, the value of assets stored on the balance sheet of the platform increased by 5% to $ 101 billion.
Coinbase employees attributed the decline in revenue to three reasons. First, due to the fall in the exchange rate of many cryptocurrencies, their level of capitalization decreased by 30%. Second, due to a lack of clarity around the legal status of digital assets, trading volume in the U.S. has declined. And third, many traders preferred to walk rather than trade virtual currency.
The Coinbase stock market has also seen negative dynamics. This year the price of the firm’s securities fell by more than 70%. After the publication of the financial report, the value of the exchange’s assets fell sharply by 7% and reached a three-month low of $53.17. Then the share price pushed back from the bottom and corrected to $58.
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