The bearish trend in crypto markets has left its mark on trading platforms. While the charts are steadily rising, Coinbase is visibly falling. After numerous scandals, the platform is printing a heavy loss which could 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 drop. In the momentum, the exchanges also suffered, in this case, Coinbase. The platform has been accumulating escapades for a few months and it is talking again.
Big loss for Coinbase
After having long been a reference in terms of crypto exchange, it is today on the wrong side of the poll. Indeed, Coinbase has just to unveil its results in Q2 and one thing is certain, they are not reassuring. The crypto exchange’s revenue was down around 60% from the same quarter last year.
These went from $803 million in 2021 to $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 only 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 smile on him. The crypto winter hasn’t helped much. On the contrary, it only complicated them. After losing the top spot to Binance, the company was not even able to stabilize on the second step as it is now attributed to FTX.
The fall of cryptocurrencies accelerated the demise of the platform. During this period, Coinbase parted ways with approximately 18% of its staff. As things began to calm down, an SEC investigation cast discredit on the platform. Indeed, the latter has lost quite a few investors, in particular Ark Invest.
Given all the problems the platform is currently facing, its poor results are not a surprise. Obviously, 2022 does not seem to be the best year for Coinbase. One could blame the crypto winter, but there is no doubt that the downfall started a bit earlier.
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