Stocks of the exchange electronic money The largest U.S. stock has dropped significantly following disappointing earnings reports and bleak future predictions as signs of “crypto winter” begin to emerge.
Trading volume of Coinbase dropped more than 40% in the first quarter of 2022, due to a disappointing earnings report and a bleak outlook given the overall decline in the crypto market. Specifically, shares of Coinbase fell more than 15% in after-hours stock trading, after the company reported a net loss of $430 million, much larger than the $47 million expected by Wall Street analysts. . The company’s revenue also fell 35% year-on-year to $1.2 billion, falling short of analyst expectations of $1.5 billion.
Coinbase expects users and trading volume to decrease in the current quarter
Explaining the above situation, Coinbase blamed “the trend of lower crypto asset prices and volatility that started towards the end of 2021.” Trading volume fell 44% from the previous quarter, which Coinbase says is “in line with the crypto spot market.” “We believe these market conditions are not permanent and we remain focused on the long term,” Coinbase said.
Bitcoin’s value this week has more than halved from its peak of $69,000 recorded in mid-November 2021. This time is being likened to “crypto winter”. The current results are in stark contrast to Coinbase’s earnings during the bull market last summer. Coinbase’s profits at the time surpassed those of larger, older exchange operators like CME Group and the Intercontinental Exchange.
Coinbase is currently looking to diversify its operations business its own, to market the irreplaceable token (NFT) last week in an attempt to challenge the lucrative market set up by startup OpenSea. The American exchange is also exploring other offerings, such as crypto derivatives.