Coinbase’s trading volume fell more than 40 percent in the first quarter because the worse and worse-than-expected earnings highlighted the collapse of the crypto bear market.
After Wall Street analysts lost $ 430 million more than expected $ 47mn, shares of the largest US crypto exchange traded more than 15 percent in afternoon trading.
Most business revenues fell 35 percent to $ 1.2 billion a year.
Launched in April 2021, the company “continues. . . The trend of low crypto asset prices and volatility, which began in late 2021, is “We believe these market conditions are not sustainable and we will focus on the long term.
Compared to the previous quarter, the volume of transactions decreased by 44%, which is “in line with the large crypto space market,” he said. Monthly marketing users – who are said to be active or proactive in the past month – have dropped to 9.2mn, which is 20 percent less than in the previous quarter.
In mid-November, Bitcoin, the popular cryptocurrency, has fallen by more than half since its arrival in mid-November.
The recent rise in interest rates has been a major source of frustration for investors as they flee the perilous corners of the global financial market. As speculation swells, the market capitalization of the top 500 digital assets fell by half in November 2021, according to CryptoCompare data collected by the Financial Times.
Coinbase’s performance in the second quarter surpassed that of the largest and most established exchange operators, including Chicago and Intercontinental, in the bull market.
In light of this, the company forecasts that crypto asset volatility and crypto asset prices will decline in April, and that the number of users and transactions will decrease compared to the first quarter.
In response, Coinbase sought to expand its business by launching an irreplaceable token market in an attempt to counter the lucrative model of OpenSea. He has also explored other offerings, such as cryptocurrencies and “container products” – a way to earn prizes with certain digital coins – and Coinbase Wallet.
Despite the sad prospect, executives at the company asked analysts not to worry about the downturn.
“Because we are greedy when others are afraid, we tend to see fall times as a great opportunity,” said Coinbase CEO Brian Armstrong. “In those times we tend to be good-natured – others lead, distracted, discouraged – and so we do what we can in a very short time.”
The company’s shareholder signed the letter with the acronym “We all do it”, which is popular among the #Wagmi-crypto community.