CRYPTO NEWS: TRADING REVENUE HAS DECREASED BY ALMOST HALF.

TRADING REVENUE HAS DECREASED BY ALMOST HALF
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THE CEO OF COINBASE CLAIMS THAT TRADING REVENUE HAS DECREASED BY ALMOST HALF. IN LIGHT OF THE BEAR MARKET, THE BITCOIN EXCHANGE HAD ALREADY ANTICIPATED LOSSES OF $500 MILLION THIS YEAR.

THE EXCHANGE’S TRADING REVENUE HAS DECREASED BY AT LEAST 50% FROM THE PRIOR YEAR, ACCORDING TO BRIAN ARMSTRONG, CEO OF COINBASE, ACCORDING TO A BLOOMBERG REPORT FROM DECEMBER 7.

TRADING REVENUE HAS DECREASED BY ALMOST HALF:

TRADING REVENUE HAS DECREASED BY ALMOST HALF
THE CEO OF COINBASE CLAIMS THAT TRADING REVENUE HAS DECREASED BY ALMOST HALF

IN AN INTERVIEW WITH BLOOMBERG’S DAVID RUBENSTEIN SHOW, ARMSTRONG MADE THE ASSERTION. WHEN ASKED HOW MUCH MONEY THE EXCHANGE MADE, HE SAID THAT IN 2021 IT MADE $7 BILLION AND EARNED $4 BILLION, BUT THAT IN 2022 “IT’S LOOKING, YOU KNOW, APPROXIMATELY NEARLY HALF THAT OR LESS.”

A SPOKESWOMAN FOR COINBASE LATER CLARIFIED, ACCORDING TO BLOOMBERG, THAT 2022 REVENUE, NOT PROFITABILITY, WAS EXPECTED TO BE LESS THAN HALF OF WHAT THEY WERE IN 2021.

BEFORE THIS, COINBASE HAD PREDICTED IN A LETTER TO INVESTORS THAT ITS ADJUSTED PROFITS BEFORE INTEREST, TAXES, DEPRECIATION, OR AMORTIZATION (EBITDA) FOR 2022 WOULD BE A LOSS OF ABOUT $500 MILLION.

WHEN ASKED WHETHER HE BELIEVED THE FTX COLLAPSE WOULD HARM THE CRYPTOCURRENCY INDUSTRY, ARMSTRONG REPLIED IN THE NEGATIVE. ALTHOUGH HE ACKNOWLEDGED THAT IT LEAVES “A LITTLE BIT OF A BLACK MARK,” HE CONTENDED THAT WHAT TRANSPIRED IS NOT MUCH DIFFERENT FROM CONVENTIONAL FINANCIAL CRISES LIKE THOSE INCLUDING ENRON & BERNIE MADOFF.

ACCORDING TO ARMSTRONG, RESTRICTIONS “WON’T BE A BAD THING” AND THE FTX FAILURE WOULD “ACT AS A WAKEUP CALL” THAT WOULD RESULT IN MORE LUCID RULES IN THE US.

THE CEO OF COINBASE MADE A POINT OF POINTING OUT THAT VARIOUS CRYPTOCURRENCIES HAD VARIOUS USE CASES WHILE DISCUSSING WHETHER REGULATORY AGENCIES OUGHT TO HAVE CONTROL OVER CRYPTO EXCHANGES. HE CLAIMED THAT BECAUSE THEY DON’T ALL FIT INTO THE SAME CATEGORY, VARIOUS CRYPTOCURRENCIES WILL NEED TO BE GOVERNED BY SEVERAL ORGANIZATIONS.

THE YEAR 2018 HAS BEEN DIFFICULT FOR CRYPTOCURRENCY EXCHANGES, NOTABLY COINBASE. THE LOSS OF THE TERRAUSD (TUSD) STABLECOIN’S PEG TO THE US DOLLAR IN MAY SEND PANIC THROUGH THE MARKET. DUE IN PART TO THE EFFECTS OF THE TUSD DEVALUATION, CRYPTOCURRENCY LENDER CELSIUS WAS UNABLE TO EXECUTE WITHDRAWALS AND FILED FOR BANKRUPTCY IN JULY.

THE SECOND-LARGEST CENTRALIZED CRYPTOCURRENCY EXCHANGE, FTX, EXPERIENCED A LIQUIDITY ISSUE AND WAS UNABLE TO HANDLE WITHDRAWAL REQUESTS JUST AS THE CRYPTOCURRENCY MARKET WAS STARTING TO REBOUND. LATER, IT ALSO STARTED THE BANKRUPTCY PROCESS.

THESE INCIDENTS AND OTHER ISSUES HAVE CAUSED A SHARP REDUCTION IN CRYPTO TRADING ACTIVITY THIS YEAR, WITH COINBASE ANNOUNCING A 44% DROP IN REVENUE ALONE IN THE THIRD QUARTER.

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CRYPTO NEWS: TRADING REVENUE HAS DECREASED BY ALMOST HALF.

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