Coinbase Reports $1.1 Bn In Net Loss, Revenue Drops 60% In Q2

Coinbase announces $1.1 billion in revenues, net loss declines 60 percent in the 2nd quarter

New Delhi, Aug 10 : The largest cryptocurrency exchange Coinbase has posted a massive loss in both profit and revenue in the Quarter ending Junereporting $1.1 billion in net loss while Revenues fell by $2.033 billion to $803 million from the year-ago Quarter , an increase of more than 60 percent.
In terms of quarter-to-Quarter the Revenues of Coinbase decreased by by 31 percent when in comparison to Q1 due to lower trading volumes.

 Coinbase Reports $1.1 Bn In Net Loss, Revenue Drops 60% In Q2-TeluguStop.com

“Q2 was a challenging year, with trading volume and transaction revenue both declining by 30 percent and 35 percent sequentially in each case.Both measures were affected by the shift in market and customer activity, influenced by macroeconomic and crypto-credit factors,” the company said after releasing its Q2 numbers in the late hours of Tuesday.

“On the cost side, we’ve taken various steps to reduce our costs and have also implemented an 18 percent reduction in the number of employees in the month of June.” the report said.

“The current downturn happened fast and rapid and we are now seeing the customer behavior mirror the patterns of previous down markets,” the company said in its shareholder letter to shareholders.

The total volume of trade fell to $217 billion which is down 30% compared to the Q1.

However, the total cryptocurrency spot trading volume fell 3 percent on a per-sequence basis that resulted in smaller market share, according to the company.

“Q2 was an assessment of the endurance of Crypto firms and a difficult Quarter in general.

Market volatility was dramatic and influenced the way that users behaved and the volume of trading which impacted revenue from transactions however, it also demonstrated the effectiveness of our risk management system,” said Coinbase.

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