The downtrend of the crypto markets has left its mark on the exchange platforms. While the charts are gradually moving upwards, Coinbase is decreasing at a glance. After many scandals, the platform is printing a heavy loss that may well mark its end.
Many trading platforms found themselves in trouble during the crypto winter. After a dramatic rise towards the end of 2021, cryptocurrency prices surprised investors with a historic fall. In the momentum, the exchanges also suffered, in this case, Coinbase. The platform has been accumulating jitters for a few months and it is making people talk again.
Big loss for Coinbase
After having long been a reference in terms of crypto exchange, today it is on the wrong side of the poll. Indeed, Coinbase has just unveil his results on Q2 and one thing is for sure, they are not reassuring. Revenues from the crypto exchange fell by about 60% compared to the same quarter last year.
The latter increased from $ 803 million in 2021 against $ 2,033 million. In the midst of all this tumult, the platform prints a heavy loss of more than a billion dollars during the financial year. All this is just the result of the bad weather that the company has been experiencing for many months.
2022, a difficult year for the exchange?
Coinbase was known until now as the best cryptocurrency exchange platform in the world. But since the beginning of this year, luck does not seem to be smiling on him. The crypto winter didn’t fix much. On the contrary, he only complicated them. After losing the first place to Binance, the company was not even able to stabilize on the second step since it is now attributed to FTX.
The fall of cryptocurrencies accelerated the decline of the platform. During this period, Coinbase parted with about 18% of its staff. As things began to calm down, an SEC investigation brings the platform into disrepute. Indeed, the latter has lost quite a few investors, in particular Ark Invest.
In view of all the problems that the platform is currently facing, its poor results are not a surprise. Obviously, the year 2022 does not seem to be the best for Coinbase. One could blame the crypto winter, but there is no doubt that the decline began a little earlier.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. Crypto community manager at the core, I am interested in everything related directly or indirectly to the blockchain and its derivatives. In order to share my experience and make known a field that I am passionate about, there is nothing better than writing informative and casual articles at the same time.