Trading platforms have seen the effects of the bearish trend in the cryptocurrency markets. Coinbase is clearly declining while the charts are constantly climbing. The platform is printing a significant loss after a string of scandals, which may easily be the beginning of the demise.
During the “crypto winter,” many trading platforms encountered difficulties. A unprecedented decline in cryptocurrency prices shocked investors after a sharp climb before the end of 2021. The exchanges, in this case Coinbase, too suffered from the momentum. The platform has been gathering misadventures for a few months, and now it is speaking once more.
Major setback for Coinbase
It was once a standard for cryptocurrency trade but is now on the losing end of the poll. Coinbase has recently revealed its Q2 results, and it’s safe to say they are unsettling. The revenue of the cryptocurrency exchange decreased by over 60% from the same quarter in 2017.
From $803 million in 2021 to $2.033 million today, these decreased. Despite all of this commotion, the platform reports a significant loss of more than a billion dollars for the fiscal year. All of this is simply a result of the unfavorable weather that the business has been dealing with for several months.
A challenging year for the exchange in 2022?
Up until recently, Coinbase was thought of as the world’s top exchange platform for cryptocurrencies. But since the start of this year, his luck has not seemed to be on his side. Not much has changed since the crypto winter. On the contrary, it made things more difficult. The company was unable to stabilize on the second step after losing the top rank to Binance, which is now credited to FTX.
The platform’s downfall was sped up by the decline of cryptocurrencies. Approximately 18% of Coinbase’s workforce left during this time. An SEC inquiry brought the site into disrepute as things started to settle down. In fact, the latter has lost a number of investors, most notably Ark Invest.
The platform’s underwhelming performance is not surprising given all the issues it is now experiencing. It is obvious that 2022 is not the ideal year for Coinbase. Although the crypto winter may be to blame, the decline undoubtedly began a little sooner.
