Connect with us

News

Coinbase earns $629m in Q4, ’22; $120m in Jan, ’23 with fewer users

Published

on

Coinbase, which stands as the largest crypto exchange in the US, has posted a revenue of $629 million after analysts projected $581 million in revenue for the crypto firm. While its revenue was above projected amounts by analysts, Coinbase said it had a loss of $557 million in the fourth quarter of 2022 which is part of the 75% plunge in total revenue for 2022 versus 2021.

From Q3 to Q4, Coinbase also had a reduction in users from 8.5 million monthly transacting users (MTUs) to 8.3 million with trading volume dropping to $145 billion in Q4. As a way of diversifying its source of income from trading fees, the company gave more attention to subscriptions and services which saw Staking, Earn, and Custody produce more than $200 million in the fourth quarter.

Speaking with CNBC, Alesia Haas, the CFO of Coinbase, said that its staking service, which is new, was not secure. Although it added about 3% of its last revenue, the CFO revealed that staking is a huge part of the future of Coinbase.

Retail is back in 2023

Furthermore, Haas added that the earlier part of Q1 2023 has seen a rebound of the market with fresh hopes and highs. She noted that for Coinbase, they have amassed $120 million in transaction fees for January alone showing that retail is back.

In 2022, the company laid off over 2,000 persons to adjust to the bear market effect and that trend showed up again in January 2023 when Coinbase announced it was laying off 20% of its workforce. Other crypto organizations have also taken to this path to realign with current realities. 

Coinbase and the SEC

Another strong challenge for Coinbase has been with the SEC since 2022. The SEC has taken more stringent measures to sanitize the crypto market following the collapse of FTX in 2022.

Like Gemini and Kraken, who have been haunted by the SEC for their staking products, Coinbase is also in a regulatory battle with the SEC over its staking services.

Read also;

Coinbase to allow users send & receive ETH, Dai & WBTC on Arbitrum

Regulate centralized, not decentralized crypto – Coinbase CEO

0 0 votes
Article Rating
Advertisement Earnathon.com
Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Crypto News Update

Latest Episode on Inside Blockchain

Crypto Street

Advertisement



Trending

ALL Sections

Recent Posts

0
Would love your thoughts, please comment.x
()
x