So far, the crypto company has been optimistic about its operating results at the end of 2022. Because, although the bear market has not spared it, Coinbase remains determined to regain a market that seems to be escaping it. This enthusiasm could be dulled in view of the company’s possible negative financial performance in the fourth quarter of 2022.
A financial loss that sends shivers down your spine!
The heyday of the mega crypto exchange, Coinbase already seems far away. In the hard for months, the company should publish soon the financial results of its operations in the fourth quarter of 2022. The figures would be far from flattering, as the platform could lose up to $600 million over the period. This result, if confirmed, would be absolutely worrying for the entire crypto industry.
Indeed, for the last three quarters, Coinbase has been struggling to make a profit. A fourth consecutive quarter of declining revenue would therefore worsen the financial situation of the platform. We could also perceive this as a very bad signal for users, reinforcing the exodus of the latter.
In this context, Coinbase’s survival against the bear market would be fundamentally compromised. This, even if the platform would have a cash flow of 5 billion dollars, allowing it to maintain itself.
Should we prepare to bury Coinbase, after FTX?
The question is legitimate. This, especially, when considering the place that the crypto exchange occupies in the industry. It is notably the second platform after Binance, to be renowned for the credibility of its services. As a symbol, the two companies are currently under the wrath of the SEC. Not to mention that at the same time, the proposed regulation of the industry threatens to drastically reduce their profits.
This means that given the current circumstances that do not promise to improve quickly, the future looks bleak for Coinbase. It remains to be seen whether this new drop in performance announced will involve a new wave of layoffs. Recently, in fact, Coinbase had resolved to restrict its workforce to remain viable.
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