The bearish trend in crypto markets has left its mark on trading platforms. While the charts keep rising, Coinbase is visibly falling. After numerous scandals, the platform is recording a large loss that could mark its end.
Many trading platforms found themselves in trouble during the crypto winter. After a dramatic rise in late 2021, cryptocurrency prices surprised investors with a historic decline. In momentum, exchanges have also suffered, in this case, Coinbase. The platform has been accumulating escapades for several months and is talking again.
Big loss for Coinbase
After long being the reference in terms of cryptocurrency exchanges, today it is on the wrong side of the survey. Indeed, Coinbase has just that to discover its results in Q2 and one thing is for sure, they are not reassuring. The crypto exchange’s revenue fell by about 60% compared to the same quarter last year.
They increased from $803 million in 2021 to $2,033 million. Amidst all these commotions, the platform prints a huge loss of more than a billion dollars during the financial year. All this is just a result of the bad weather that the company has been experiencing for several months.
2022, a tough year for exchanges?
Until now, Coinbase was known as the best cryptocurrency exchange platform in the world. However, since the beginning of this year, it seems that luck is not smiling on him. The crypto winter didn’t help much. On the contrary, it only complicated them. After losing the top spot to Binance, the company failed to stabilize on the second step as it is now attributed to FTX.
The fall of cryptocurrencies hastened the demise of the platform. During this period, Coinbase parted ways with roughly 18% of its staff. As things began to calm down, the SEC investigation discredited the platform. Indeed, the latter lost quite a few investors, especially Ark Invest.
Given all the problems the platform is currently facing, its poor results are no surprise. Obviously, 2022 is not looking like the best year for Coinbase. One might blame the crypto winter, but there is no doubt that the decline started a little earlier.
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The world is changing and adaptation is the best weapon to survive in this wavy universe. As a manager of the crypto community at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and spread the word about a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.
