Chilled Coinbase – The rough crypto winter continues to wreak havoc on industry players. Even the most solid companies suffer from it. The crypto stock market Coinbase has just published its latest quarterly resultsand the least we can do is that they are not really not good. Transaction volumes and revenues are almost in freefall.
Coinbase sees its net income reduced by 28%
The cryptocurrency exchange platform Coinbase has just communicated on November 3 the results of its third quarter of 2022, with its shareholders and the Securities and Exchange Commission (DRY). Although his reported net income is still strong, 576 million of dollars, it is in 28% drop compared to the previous quarter ($803 million).
The Terra Disaster (LUNA) and its stablecoin UST in May, then its multiples repercussions in June (bankruptcy of Three Arrows Capital, Voyager Digital, Celsius, etc.) completely undermined morale of crypto investors in the third quarter that followed.
These poor market conditions led to a strong decreased activity from Coinbase users. And that obviously impacted him, despite all the efforts that the crypto-company has made alongside that to reduce expenses as much as possible.
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Transaction volumes that fall by 44%!
In the detail of Coinbase’s financial balance sheet, we see that it is in particular its income on the transaction fees who have experienced a sharp decline. These entries have in fact gone from 655 million dollars in the second quarter to nearly 366 million of dollars. A fairly dizzying drop in 44% of this revenue from transactions.
Coinbase CEO, Brian Armstrong, however, is confident in the future of his company. In particular, he thinks that more than “regulatory clarity” should help a nice recovery in the crypto-asset market.
“I think there is an opportunity, at some point, for cryptocurrency prices to potentially decouple from the broader macro environment. We don’t know if that’s going to happen, but I think it’s one of the possibilities, and regulatory clarity is one of the things that could help kick things off. [haussier]. »
Brian Armstrong, CEO of Coinbase
Coinbase is indeed far from giving up for the moment, and the group is showing combative in many areas. For example, the exchange push for adoption even wider in sound dollar stablecoin, USDCwhich he co-created with Circle.
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