Coinbase swings to quarterly loss as crypto winter hits trading volume
$Coinbase(COIN.US$ reported a fourth-quarter loss on Tuesday, as trading volume at the cryptocurrency exchange came under pressure from an industry-wide downturn triggered by a string of high-profile bankruptcies.
The digital assets market suffered from dour sentiment over the last year, but the biggest blow to the sector came from the bankruptcy of Sam Bankman-Fried's major crypto exchange FTX in November.
The digital assets market suffered from dour sentiment over the last year, but the biggest blow to the sector came from the bankruptcy of Sam Bankman-Fried's major crypto exchange FTX in November.
"In the wake of FTX and other crypto company failures, we have seen increased regulatory scrutiny," Chief Executive Brian Armstrong said on a call with analysts but added the development will ultimately benefit Coinbase.
Amid the market downturn, trading volume at the crypto exchange plunged to $145 billion in the fourth quarter, compared with $547 billion a year earlier.
Retail traders also pulled back significantly, with their trading volume in the quarter plummeting nearly 89% to $20 billion.
Retail traders also pulled back significantly, with their trading volume in the quarter plummeting nearly 89% to $20 billion.
One bright spot was subscription and services revenue, which rose about 33% to $282.8 million in the fourth quarter, benefiting from hefty interest rate hikes.
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