Coinbase posts loss as crypto market turmoil hits trading volumes
The Hindu
Trading volumes at the cryptocurrency exchange more than halved to $217 billion in the second quarter
Coinbase Global Inc reported a larger-than-expected quarterly loss on Tuesday as investors worried by this year's rout in risky assets shied away from trading in cryptocurrencies, sending its shares down 6%.
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Trading volumes at the cryptocurrency exchange more than halved to $217 billion in the second quarter, with retail participation sinking 68% and institutional trading falling 46%.
Investors have dumped speculative assets from stocks to crypto this year on fears that aggressive central bank policy tightening could tip the U.S. economy into a recession.
That has sent crypto bellwether Bitcoin 50% lower in 2022 and forced several companies including Coinbase - which earns the bulk of its revenue from trading fees - to cut jobs.
The crypto exchange expects trading volumes in the third quarter to be even below that of the reported period.
"Coinbase will likely need to continue to cut costs if they want to avoid missing their target and maintain credibility on their ability to limit cash burn," said Michael Miller, equity analyst at Morningstar Research.
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The 29th edition of the Conference of Parties (COP29), held at Baku in Azerbaijan, is arguably the most important of the United Nations’ climate conferences. It was supposed to conclude on November 22, after nearly 11 days of negotiations and the whole purpose was for the world to take a collective step forward in addressing rising carbon emissions.