Coinbase Revenue Drops 28% as Volume Drops During Brutal Bear Market

Coinbase reported net sales of $576 million for the third quarter Thursday, down 28% from $803 million in the previous quarter.

Transaction revenue fell 44% compared to the second quarter as fewer users were active on the cryptocurrency exchange, according to the company’s earnings report. Abstentions were popular as the global market capitalization remained steady at $1 trillion, down $2 trillion from last year.

Coinbase’s monthly transaction users fell 5% and trading volumes fell 27% in the third quarter, which ended on September 30, according to the company’s shareholder letter. The exchange noted that the total value of assets on its platform increased by 4%, from $96 billion to $101 billion.

Actual trading volume on the platform – the largest publicly traded crypto exchange in the US – has decreased from $217 billion to $159 billion. But the company reported that its subscription and service revenue grew in the third quarter from $147 million to $211 million.

The company also highlighted recent deals with BlackRock and Google in its shareholder letter, indicating that it is optimistic about institutional adoption. It claims that 25% of the top 100 hedge funds are Coinbase customers.

Just yesterday, Sorojit Chatterjee, chief product officer of Coinbase, announced that it will be get down At the end of November. Coinbase stole Chatterjee from Google (and gave him a compensation package that includes files 466 million dollars value of stock options) in early 2020, but said in a LinkedIn post that “it’s time to get off the ride and catch your breath.”

It was another blow in what had already been a tough week for the company. On Thursday, COIN closed at $55.80 after declining 8% over the past day and down 21% compared to the end of last week.

But there were some small signs of optimism.

Two weeks ago, Cathie Wood’s Ark Invest CoIN bought for the first time since the company Dumped nearly $75 million shares in July. right then, Wood said The decision was made after the Securities and Exchange Commission said that nine tokens traded on Coinbase were unregistered securities.

In addition to its revenue, Coinbase has been busy advocating on behalf of its peers in the crypto industry.

Since the last earnings call, Coinbase has backed the lawsuit against the US Treasury over the sanctions against wallet addresses linked to the Ethereum Tornado Cash mixing service, and has provided friendly briefs to support Ripple and Grayscale in their court battles with the Securities and Exchange Commission.

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