Coinbase Earnings: Crypto Market Woes To Bring Another Difficult Quarter?
Coinbase Earnings: Crypto exchange Coinbase is likely to announce yet another quarterly earnings with dropped revenues, when it will report on Tuesday after market close. The earnings for the quarter ending December 2022 was marked by the shocking collapse of FTX, another crypto exchange. The aftermath of FTX collapse led to a massive drop in crypto transactions as traders preferred to stay away from volatility for a major part of the quarter. Although the crypto market took off to a fresh start in January 2023 with a steady rally, the mounting regulatory concerns stand in the way of Coinbase in the current and upcoming quarters.
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Coinbase Earnings Drop Continues?
According to market analysts, $COIN could post a 75% drop in revenue compared to the same quarter in 2021, which was the peak of the last bill run. Just as the crypto ecosystem appeared to have partly recovered from the Terra network collapse mid-year, the FTX fiasco dealt a body blow to the crypto market. This led to huge decline in the number of transactions as well as trading volumes. On Tuesday, the Coinbase stock reflected similar anticipation as $COIN trades in the red at $65.15 at a decline of 0.57%.
On the flip side, the US based exchange might have avoided some burden thanks to the cost cutting measures. Since June 2022, the Coinbase laid off around 2,110 workers. However, concerns are bound to continue and potentially impacting Coinbase’s bottom line in the current quarter, as the U.S. Securities and Exchange Commission (SEC) recently found fault with Kraken’s crypto staking service. If the regulators continue to crackdown on crypto businesses, Coinbase could well be next in line.
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