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Title: Coinbase posts net loss of $430 million for Q1 2022 Post by: stompix on May 11, 2022, 04:16:39 PM If everything around goes down in flames, at least let's have some barbecue with it
https://www.theblockcrypto.com/post/146161/coinbase-q1-2022-earnings-revenue Quote Crypto exchange company Coinbase said it incurred a net loss of $430 million during 2022’s first quarter. The earnings release follows a rocky period for Coinbase’s stock and the US equities market as a whole. Coinbase’s report showed a quarterly trade volume of $309 billion, down from $547 billion in Q4 2021. Retail transaction revenue in Q1 was $966 million, down 56% compared to Q4. Assets on platform fell to $256 billion. Not only did Coinbase manage somehow with all their fees to run into a net loss, but they've also lost close to 50% of their trading volume so the magical solution is, as usual, to grab the next trend and bet on it: Quote In the letter, Coinbase said that "we believe these market conditions are not permanent and we remain focused on the long-term." The firm said future plans include continued investments in its wallet and NFT-related services. Of course, this is the crypto press, now if we switch to the evil mainstream media we find something a bit different: https://fortune.com/2022/05/11/coinbase-bankruptcy-crypto-assets-safe-private-key-earnings-stock/ Report linked here and : https://d18rn0p25nwr6d.cloudfront.net/CIK-0001679788/89c60d81-41a2-4a3c-86fb-b4067ab1016c.pdf Quote Our failure to safeguard and manage our customers’ fiat currencies and crypto assets could adversely impact our business, operating results, and financial condition. As of March 31, 2022, we held $256 billion in custodial fiat currencies and cryptocurrencies on behalf of customers. Supported crypto assets are not insured or guaranteed by any government or government agency. We have also entered into partnerships with third parties, such as with the Centre Consortium, as a reseller of USDC, where we or our partners receive and hold funds for the benefit of our customers. Our and our partners’ abilities to manage and accurately safeguard these customer assets requires a high level of internal controls. As our business continues to grow and we expand our product and service offerings, we must continue to strengthen our associated internal controls and ensure that our partners do the same. Our success and the success of our offerings requires significant public confidence in our and our partners’ ability to properly manage customers’ balances and handle large and growing transaction volumes and amounts of customer funds. In addition, we are dependent on our partners’ operations, liquidity, and financial condition for the proper maintenance, use, and safekeeping of these customer assets. Any failure by us or our partners to maintain the necessary controls or to manage customer crypto assets and funds appropriately and in compliance with applicable regulatory requirements could result in reputational harm, litigation, regulatory enforcement actions, significant financial losses, lead customers to discontinue or reduce their use of our and our partners’ products, and result in significant penalties and fines and additional restrictions, which could adversely impact our business, operating results, and financial condition. Moreover, because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors. This may result in customers finding our custodial services more risky and less attractive and any failure to increase our customer base, discontinuation or reduction in use of our platform and products by existing customers as a result could adversely impact our business, operating results, and financial condition. I think this is the best we will get from an exchange telling its users not your keys, not your coins! Title: Re: Coinbase posts net loss of $430 million for Q1 2022 Post by: hugeblack on May 13, 2022, 10:54:25 AM I think that the date of publishing the news is related to what is happening now, in an attempt to debugging the link between USDC and the value of one dollar, but I do not consider that anything new or different in this news or new in it.
In general, Coinbase Company has a much better position than most crypto platforms, and perhaps it is the best if you compare it with Binance, so trying to take it down will not be easy, as it cooperates well with the authorities and has shares listed on the stock exchange, so unless prices collapse to less than 3000 dollars, or more We won't see a big problem with that platform. Title: Re: Coinbase posts net loss of $430 million for Q1 2022 Post by: DaveF on May 13, 2022, 07:06:28 PM Since I am not a stockholder and don't have any real money in Coinbase I didn't bother to read any of the articles, is there a tl;dr on HOW they lost that much money.
Did they invest a lot of capital into expansion? Investments that went bad? Rogaine for Brian Armstrong? Or with trading down and the price of crypto down did their revenue just not cover expenses? -Dave Title: Re: Coinbase posts net loss of $430 million for Q1 2022 Post by: bitmover on May 13, 2022, 08:21:37 PM Since I am not a stockholder and don't have any real money in Coinbase I didn't bother to read any of the articles, is there a tl;dr on HOW they lost that much money. Did they invest a lot of capital into expansion? Investments that went bad? Rogaine for Brian Armstrong? Or with trading down and the price of crypto down did their revenue just not cover expenses? -Dave I took at look at the Coinbase's shareholder letter (https://www.sec.gov/Archives/edgar/data/1679788/000167978822000047/finalsecversionq120225-1.htm) and all their revenue reduces from the last quarter https://i.imgur.com/s1CGUjH.png You can see that monthly transactions by users declined in the last quarter. You can also see that the trading volume in Q1 22 was lower than all quarters in 2021. The net revenue was also smaller than in 2021. They said that the reason for such bad results were the market conditions. This might be true, and if stay in a downtrend for long we can see a lot of smaller exchanges going bankrupt. Title: Re: Coinbase posts net loss of $430 million for Q1 2022 Post by: The Sceptical Chymist on May 13, 2022, 08:51:05 PM Not only did Coinbase manage somehow with all their fees to run into a net loss, but they've also lost close to 50% of their trading volume so the magical solution is, as usual, to grab the next trend and bet on it: Well those two things are interconnected, i.e., whaever their fee structure is, if they lose trading volume they lose money (unless I'm missing your point altogether).In any case, fuck Coinbase and the busted-ass Trojan hiding the government and bankers inside they rode in on. My personal opinion is that hardcore bitcoiners know better than to use them, since you can basically kiss your privacy goodbye if you're sending to and receiving bitcoin from Coinbase. They're watching everything, you know. That'll teach crypto exchanges to go public. Being accountable to shareholders (who might happen to be institutions voting their proxies) presents loads of problems as far as keeping the spirit of crypto intact. |
