Home Technology Crypto exchange Coinbase posts loss as trading volumes plummet

Crypto exchange Coinbase posts loss as trading volumes plummet

0
Crypto exchange Coinbase posts loss as trading volumes plummet

A representation of the cryptocurrency is seen in front of the Coinbase logo in this illustration taken March 4, 2022. REUTERS/Dado Ruvic/Illustration

Join now for FREE unlimited access to Reuters.com

Aug 9 (Reuters) – Coinbase Global Inc (COIN.O) announced a second-quarter loss on Tuesday, hurt by a slump in trading volumes as the rout in risky assets this year dampened investors’ appetite for cryptocurrency trading.

Shares of the company were down 6% in extended trading.

Investors have thrown speculative assets from equities into crypto this year, fearing that aggressive central bank policy tightening could tip the US economy into a recession.

Join now for FREE unlimited access to Reuters.com

This sent the token bitcoin plummeting and forced several companies in the industry, including Coinbase – which derives most of its revenue from trading fees – to cut jobs. Read more

Trading volumes slowed to $217 billion in the second quarter ended June 30 from $462 billion a year earlier when crypto’s march to the mainstream sparked traders’ interest.

Coinbase posted a net loss of $1.09 billion, compared to a profit of $1.61 billion a year earlier.

One of the largest cryptocurrency exchanges in the world, Coinbase has seen its market valuation drop over 60% so far this year.

Join now for FREE unlimited access to Reuters.com

Reporting by Mehnaz Yasmin in Bangalore; Editing by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here