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    Coinbase shares knocked due to reduced user numbers and trading volumes

    Coinbase’s share price fell nearly 15% on Tuesday. Cryptocurrency The exchange reported disappointing earnings and a decline in active users in the third quarter as a sign that enthusiastic trading had subsided.

    According to S & P Capital IQ, third-quarter revenue was $ 1.31 billion, an increase of more than 300% from the same quarter last year, well below analysts’ expectations of $ 1.58 billion.

    The results suggest that crypto trading is dramatically colder than in the previous bumper quarter. Coinbase With net income of over $ 2 billion and net income of $ 1.6 billion, it outperformed established exchange operators such as Chicago’s CME Group and the Intercontinental Exchange.

    Trading volume fell 29% from the previous quarter to $ 327 billion.

    Coinbase, this Published publicly In April, the number of monthly trading users of retailers (called MTUs) who trade at least once a month increased from 2.1 million in the same period of the previous year and decreased from 8.8 million in the previous quarter to 7.4 million. He also states that he has reached a person.

    Net income is $ 406 million, which exceeds the consensus estimate of about $ 380 million.

    It happens because the meme stock revolution has lost momentum and the crypto market hype and volatility has diminished during the summer. Last month, online brokerage firm Robin Hood also reported a sharp drop in crypto trading, hurting the company’s overall growth.

    “Our business is volatile, as our year-to-date results clearly show,” Coinbase said in a shareholder letter, giving investors a “long-term” view of the crypto market. I urged you.

    “Low volatility and falling crypto asset prices softened the crypto market into the third quarter, but market conditions improved significantly in the second half of the quarter and continued to be seen at the beginning of the fourth quarter. I did. ”

    In fact, the two most popular cryptocurrencies, Bitcoin and Ethereum, hit record highs on Monday, surpassing $ 68,000 and $ 4,830, respectively. According to the company, the two digital coins accounted for 19% and 22% of total trading volume on the platform in the third quarter, respectively, with the remaining 59% being other crypto assets.

    Recently, the company, for example, has begun to diversify into new business areas. Announced last month Launching an irreplaceable token marketplace in the ongoing digital collector boom.

    In a call with investors on Tuesday, Coinbase CEO Brian Armstrong said NFTs could become a large market for digital assets in the future and “bigger” than the cryptocurrency business. .. He added that the company’s NFT marketplace is intended to be more like an “Instagram” where users can showcase digital art as part of their social profile, rather than an auction platform such as eBay. ..

    Coinbase is involved in the general public Spats with US Regulatory AuthorityWhen they evaluate how to manage the bohemian crypto market, they raise the potential for new curbs and compliance costs in the future crypto business.

    In September, Brian Armstrong was a US Securities and Exchange Commissioner after threatening regulators to sue the company if the US Securities and Exchange Commission launched a product that would pay interest on cryptocurrencies bet without official registration. He accused the society of being “rough” and opaque.

    In embarrassing compassion, Coinbase later shelved product plans.But now In search of The US securities law 100 years ago claimed to be unsuitable for the crypto market and created a single dedicated agency to regulate digital assets.

    At an investor call, Armstrong met with SEC chairman Gary Gensler last week and said he was “very productive.”

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    Coinbase shares knocked due to reduced user numbers and trading volumes

    Source link Coinbase shares knocked due to reduced user numbers and trading volumes

    The post Coinbase shares knocked due to reduced user numbers and trading volumes appeared first on Eminetra.

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