Coinbase warns of halved revenue in 2022

Original title: FTX’s bankruptcy intensifies the rout of the currency circle, “the first encrypted stock” Coinbase warns that this year’s revenue will be cut in half

Financial Associated Press, November 8th (Editor Bian Chun) Since the beginning of this year, under a series of headwinds such as the global interest rate hike, the currency price has suffered a severe setback, and a series of eye-catching collapses including the bankruptcy of FTX have further damaged the Investor confidence exacerbated the industry rout. Cryptocurrency exchange Coinbase Global Inc warned on Wednesday that its revenue is expected to halve this year.

In a tweet, Coinbase said its CEO Brian Armstrong expects the company’s fiscal 2022 revenue to be less than half of what it made in fiscal 2021 .

Armstrong made comments about the crypto industry in an interview with the media. He also called for greater regulation of cryptocurrencies, with the U.S. Securities and Exchange Commission (SEC) overseeing crypto securities while other regulators oversee different crypto products.

Emphasis is different from FTX

Armstrong called the collapse of cryptocurrency exchange FTX a “stain” on cryptocurrencies, but said “it’s not representative of the industry as a whole.”

Founded by Sam Bankman-Fried in 2019, FTX filed for Chapter 11 bankruptcy protection on November 17, 2022, after reports of alleged misuse of client funds prompted mass withdrawals from the platform. Divestment. The company’s valuation peaked at $32 billion in March.

Armstrong said that Coinbase is “very different” from FTX because it is a publicly traded company based in the U.S. and its financial statements are publicly disclosed. He claimed that Coinbase has never created its own crypto token, nor has a partner hedge fund like FTX, because it would create a “conflict of interest.”

According to the Coinbase website, the company is a cryptocurrency trading platform that has been operating since 2012. As the largest cryptocurrency trading platform in the United States, Coinbase registered on NASDAQ in April last year, becoming “the first cryptocurrency exchange”.

series of shocks

Nearly $2 trillion has been wiped off the market value of cryptocurrencies this year as rising interest rates and fears of a recession intensified, leading to key crypto players including Voyager Digital, Three Arrows Capital and Celsius Network Currency industry players are eliminated.

Recently, the bankruptcy of FTX has dealt an even bigger blow to digital assets, and investor confidence has been further shaken. The company quickly collapsed amid doubts about its financial health, with a $6 billion divestment in just 72 hours.

Analysts expect Coinbase’s fourth-quarter revenue to fall 75% to $621.5 million, according to Refinitiv data. Its shares have fallen more than 80% so far this year.