Coinbase crashes by 13%

Coinbase reveals total net revenue of $1.235 billion in Q3 vs. $1.614 billion estimates

Shares of Coinbase plunge more than 13% in extended trading after the company came with 3Q revenue of $1.31 billion, missing Wall Street’s estimates.

Trading volumes dropped to $327 billion in the quarter from $462 billion in the previous quarter.

Coinbase crashes by 13%Coinbase/ Photo: Coinbase

US cryptocurrency exchange platform Coinbase blamed market turbulence and lower prices in a part of the third quarter. “In lower volatility periods, we see our low-dollar traders become less active,” CFO Alesia Haas noted during the earnings call to analysts.

Coinbase expects more users: between 8 million and 8.5 million such users, up from 5.5 million to 8 million projected earlier, raising significantly the full-year average monthly transacting user guidance, but the transaction-based revenue dropped lower from the previous quarter levels.

Our strategy supports all legal assets since we are uncertain of which assets our customers will adopt,” said Haas. You would see less Bitcoin and Ethereum in Coinbase’s trading volume:

Coinbase was set up in 2012 to make it easier to trade crypto assets, the platform claims to have more than 70 million active users.

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