Coinbase, a popular cryptocurrency exchange, has published its financial statement for the second quarter of 2022, revealing a $1.1 billion loss.
The crypto exchange attributes the company’s poor financial results to the current state of the crypto markets.
The Nasdaq Stock Exchange-listed company stated in the report that they noticed customer behavior mirroring “that of past down markets.”
According to the financial report, Coinbase is facing a 30% decline in trading volume and a 35% fall in transaction revenue.
The “tough quarter” has been blamed on a “shift in customer and market activity, driven by macroeconomic and crypto credit factors alike.”
Although the cryptocurrency exchange is facing tough times, it claims there is light at the end of the tunnel due to an encouraging “44% year-over-year growth in subscription and services revenues.”
As a result of the poor crypto market conditions, Coinbase has joined the ranks of crypto companies that have reduced the size of their workforce. According to its financial statement, the crypto exchange took “steps to streamline our cost structure, including an 18% employee reduction in June.”
Another aspect of its cost-cutting plans is a reduction in funds designated for “Technology & Development and General & Administrative expenses.”
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