Coinbase Reports a Major Loss

As the crypto market continues to make waves, Coinbase, the major American cryptocurrency exchange, has reported a substantial loss.

According to Reuters, Coinbase Global Inc (COIN.O) missed estimates for first-quarter revenue, with its shares plunging 12.7% to $63.71 in extended trading on May 10. Since the company’s market debut in 2021, its stock values shed 71%. Meanwhile, its total revenue slumped 35% in total revenue to $1.17 billion for the three months ending on March 31. Coinbase shares further plummeted nearly 25% in early trading Wednesday morning, hitting their lowest level ever. Trade volumes took a hit as well, falling from $335 billion a year earlier to $309 billion for the quarter ended March 31. Retail trade tumbled 38% to $74 billion. Common shareholders lost a total of s $429.7 million, or $1.98 a share, for the three months ended March, compared with net income of $387.7 million, or $3.05 a share, in 2021. The exchange is also expecting an even more substantial drop because of the bear market. Despite problems, the company said that it remains "as excited as ever about the future of crypto." Bitcoin, which is currently trading at just over $30,000, made up 24% of Coinbase’s trading volume. With the mother-of-all-crypto down by 21.78% in the past seven days, the cryptocurrency market is taking a serious hit as a result of economic and geopolitical uncertainties. Among them is inflation and Russia’s war in Ukraine. In April, Coinbase Global Inc (COIN.O) was valued at $86 billion at the end of its Nasdaq debut.