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    Coinbase Reports a Net Loss of $430 Million in Q1 2022

    The report follows a rocky period for Coinbase’s stock and the whole US equities market.

    On the evening of May 10, Coinbase, one of the largest cryptocurrency exchanges, announced its financial report for Q1 2022.

    This report shows that Coinbase’s revenue in Q1 is $1.16 billion, lower than the $1.59 billion in operating expenses, which means a loss of $430 million.

    For comparison, in Q4/2022, Coinbase reported revenue of $2.5 billion and a profit of $840 million.

    (Cre: Coinbase Financial Report)

    “The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results,” the crypto exchange said. “But, we entered these market conditions with foresight and preparation, and remain as excited as ever about the future of crypto.”

    Trading volumes came in at $309 billion for Q1 2022, down from Q4 2021’s $547 billion.

    COIN price also plunged according to the underperformance of Coinbase. As reported, Coinbase stock has consistently down to the bottom in the last 4 months. As of update time, COIN price has dropped to $72.99 – down 78.5% since the peak of $340 in April 2021.

    COIN Price Fluctuation (Cre: TradingView)

    Coinbase is also under pressure because of the not-so-successful launch of its NFT platform, despite a lot of time invested in building and promoting this new project. 

    Despite all the turbulence, the exchange still shows its positive view. In the letter, Coinbase said that “we believe these market conditions are not permanent and we remain focused on the long-term.” The firm said future plans include continued investments in its wallet and NFT-related services. 

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