The largest US crypto exchange Coinbase has plunged deep into the red due to the price drop for digital currencies such as Bitcoin and Ethereum. In the second quarter, there was a loss of 1.1 billion dollars (1.08 billion euros), Coinbase announced on Tuesday after the US market closed.
A year ago, the trading platform made a profit of $1.6 billion. High depreciations on investments now weighed heavily on Coinbase.
The wild swings in the balance sheet also show how dependent the fee-based business model is on the ups and downs of the crypto markets. In the most recent quarter, sales fell more than 60 percent year-on-year to $808 million.
“The current downturn came fast and stormy,” Coinbase said of the crypto crash. The stock lost 5 percent in after-hours trading. The figures lagged behind already subdued expectations.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
