Once the market closes, leading US crypto exchange Coinbase will announce its financial numbers for the three months ending December 2022.
Cost-cutting may have eased US-based exchange tension. Since June 2022, Coinbase fired 2,110 employees.
The cryptocurrency exchange Coinbase is expected to release yet another quarterly profits report on Tuesday after the market has closed with lower sales. The earnings for the quarter ending in December 2022 were significantly impacted by the unexpected failure of FTX, another cryptocurrency exchange. Cryptocurrency transactions significantly decreased after the FTX collapse as traders opted to stay away from volatility for the balance of the quarter. Coinbase is facing challenges as a result of increased regulatory concerns in the current and upcoming quarters, despite the cryptocurrency market experiencing a new beginning in January 2023 with a steady climb.
According to market analysts, COIN may have revenue that is 75% lower than it was in the same quarter in 2021, when the previous bill run was at its peak. Just as the cryptocurrency ecosystem appeared to be largely recovering from the Terra network failure in the middle of the year, the FTX fiasco dealt a devastating blow to the sector. As a result, both the number and amount of transactions significantly fell. On Tuesday, the anticipation level in the Coinbase stock was similar; COIN is down at $65.12 after falling 0.54%.
On the other hand, the cost-cutting measures might have relieved some stress on the US-based exchange. 2,110 employees have been let go by Coinbase since June 2022. Nevertheless, considering that Kraken's bitcoin staking service has lately come under investigation by the U.S. Securities and Exchange Commission (SEC), concerns are likely to linger and might have a negative impact on Coinbase's earnings this quarter. If regulators continue to tighten down on bitcoin businesses, Coinbase might be the next in line.
