According to the Financial Times, Coinbase lost $430 million in Q1 2022, which means that the first quarter of 2022 was unsuccessful for the cryptocurrency exchange.
Trading volumes fell by about 44%. Moreover, the fall was more significant than analysts had previously expected.
The lion’s share of transactions fell on short-term contracts. As a result, speculators provoked a drop in trading.
Up to 85% of Coinbase’s profits come from transaction fees. Analysts initially expected losses of $47 million, but in fact they amounted to $430 million.
Revenue in January-March reached $1.16 billion, while the company expected it to be in the range of $1.5 billion. According to the company’s press service, the aggravation of volatility and the fall of the crypto market were the main factors that worsened Coinbase’s financial performance.
