Top bitcoin exchange Coinbase expects revenue to drop significantly this year. Coinbase CEO Brian Armstrong says falling prices and the collapse of FTX have shaken investor confidence.
After the FTX empire collapsed, investors fled as the prices of some of the most traded tokens plummeted, ending a bad year for the cryptocurrency industry.
the cryptocurrency exchange is predicted to see a drastic drop in revenue this year of over 50%.
Leading bitcoin exchange Coinbase expects revenue to drop significantly this year. According to Coinbase CEO Brian Armstrong, the confidence of investors has been affected by declining prices and the demise of a rival exchange, FTX. As a result, revenue may drop by as much as 50% in 2022 compared to the previous year.
An already disastrous year for the cryptocurrency market came to an end with the abrupt collapse of the FTX empire, with investors fleeing as the prices of some of the most regularly traded tokens dropped.
The company's third-quarter revenue in 2022 was barely one-fourth of what it had been in the final three months of 2021, when Bitcoin reached its all-time high, and the company's shares have lost more than 80% of their value since then.
According to Brian Armstrong, who was reported as saying, "This year with everything coming down, it's looking, you know, approximately roughly half that or less," we did about $7 billion of sales and about $4 billion of positive EBITDA last year.
According to Coinbase's adjusted EBITDA, a measure of earnings that excludes particular costs like interest and depreciation, the company may experience a loss of no more than $500 million in 2022.
Armstrong's projection is in line with the $3.2 billion experts projected, despite the company's lack of a full-year revenue forecast.
The FTX dispute heightened the industry's already gloomy atmosphere, which was exacerbated by the failure of well-known crypto companies like the Celsius Network and 3AC. One that is more recent is BlockFi Inc., which was purportedly promoted and backed by FTX itself.
Despite the effects of FTX, the CEO, according to Armstrong, plans to continue working with government officials to assist the industry. He also predicted that legislation regulating cryptocurrencies may still be implemented over the course of the next year.
Armstrong believes that definitions of commodities and securities, rules for centralised exchanges and custodians, and stablecoin regulations should all be given high emphasis in the upcoming months.
