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Coinbase’s numbers don’t surprise because of crypto winter, according to CoinFlip CEO

Cryptocurrency exchange Coinbase recorded huge losses in the last quarter as the bear market continues to affect businesses in the crypto space. Coinbase is one of the most popular crypto exchanges worldwide. It reported its second quarter earnings earlier this week. As cryptocurrencies prices fell, the exchange’s revenue dropped 61% over the past quarter. The…

Cryptocurrency exchange Coinbase recorded huge losses in the last quarter as the bear market continues to affect businesses in the crypto space.

Coinbase is one of the most popular crypto exchanges worldwide. It reported its second quarter earnings earlier this week. As cryptocurrencies prices fell, the exchange’s revenue dropped 61% over the past quarter.

The after-tax loss reported by the San Francisco-based company was $1.1bn compared to the $1.6bn net profit recorded in the middle last year’s crypto boom. The loss was attributed to an impairment charge on venture and crypto investments.

Alesia HAAS, Chief Financial Officer at Coinbase, stated that the company’s $6.2bn of capital would allow it to continue investing in the downturn.

Ben Weiss is the CEO and co-founder of CoinFlip. He shared his thoughts with Coinjournal about Coinbase’s most recent earnings report. CoinFlip, a crypto platform and financial service provider, is the largest Bitcoin ATM operator in the United States.

Weiss said;

“Coinbase’s numbers aren’t surprising given the current economic climate and crypto winter. Coinbase is taking financial discipline and focusing on core products as a response to the current economic climate. Despite declining revenue and volume, Coinbase continues to attract significant numbers of users. This shows its brand recognition and ability to capitalize on crypto’s recovery. The shareholder letter shows management’s confidence in the future of crypto and the company’s commitment to continue building regardless of prices and short-term economic trends.”

Despite the disappointing performance, Weiss maintained that Coinbase’s stock decline was an exaggerated reaction and that the cryptocurrency exchange is still a well-known name in the space. Weiss said;

” The crypto market has experienced volatility and deleveraging that have put downward pressure on the prices of crypto assets. This will have a negative effect on the valuations of crypto companies like Coinbase. The market seems to be comparing the performance of crypto assets and the companies within the crypto ecosystem. Therefore, the Coinbase stock price reduction may be an exaggeration. Coinbase is a leader in the space with strong brand recognition, and its business model is much more robust than some of the problematic business models we’ve been hearing about – such as centralized crypto lending companies.”

The bear market continues to impact the operations of many cryptocurrency businesses. Some have filed for bankruptcy, while others have stopped withdrawals from their platforms.

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Bitcoin

Former Coinbase Business Developer: ‘There Wasn’t a Long-Term Case for Bitcoin Payments’

Nick Tomaino, a former business developer and marketing lead at Coinbase, explained how the idea of bitcoin for payments gradually lost its relevance in the market. Tomaino detailed that Coinbase rode this premise back in 2014 to raise $125 million in two funding rounds, but it was quickly clear that there was not a case [……
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Bitcoin

Japanese Corporation Metaplanet Acquires More Bitcoin, Stock Price Soars

Metaplanet, a publicly traded corporation on the Tokyo Stock Exchange, has announced an investment of 23.351 bitcoins, with an average purchase price of 10,706,180 yen per BTC, totaling 250 million yen ($1.6 million). The company now holds 141.0727 bitcoins, with an average purchase price of 10,278,391 yen per BTC…
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Bitcoin

BTC slips amid poor debut for Hong Kong spot ETFs

Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading. Data showed trading volumes hit just over $11 million, against expectations of over $3oo million. Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading…


  • Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading.
  • Data showed trading volumes hit just over $11 million, against expectations of over $3oo million.

Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading for much hyped spot Bitcoin and Ethereum ETFs in Hong Kong.

BTC was down about 1.4% at the time of writing, having touched lows of $61,587 across major crypto exchanges.

The benchmark cryptocurrency, which has struggled to reclaim key levels since its recent halving event, was seeing a 24-hour trading volume of $28.4 billion.

Bitcoin price and Hong Kong spot ETFs debut

Earlier, Bitcoin price surged to above $64,000 as the six spot Bitcoin and spot Ethereum ETFs went live in Hong Kong.

The flagship cryptocurrency rose to over $64,727 on US-based crypto exchange Coinbase. BTC also soared after reports Hong Kong approved the listing of the ETFs.

NEW: 🇭🇰 Opening ceremony of Hong Kong spot #Bitcoin ETFs 👏 pic.twitter.com/ux1eb5PqRn

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

However, as data streamed in showing disappointing trading volumes and inflows, Bitcoin price took a hit. According to details of the six ETFs’s debut day, total trading volume reached just $11 million, not impressive given projections were much higher at over $300 million.

Bitcoin ETFs saw about $8.5 million while Ethereum ETFs recorded just $2.5 million on the first day. Ethereum price fell to $3,040.

Notably, the figures from Hong Kong are way lower compared to those recorded amid the enthusiasm that greeted the launch of spot Bitcoin ETFs in the US in January. On their debut, the US spot BTC ETFs raked in over $4.6 billion in trading volume.

The start to trading for the ETFs has not helped BTC price and BTC could face a slide under the $60k level if sentiment flips negative. On the upside, resistance at $65k remains critical and a breakout could see the bellwether digital asset soar towards its recent peak.


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