Coinbase’s crypto crunch lowers trading

Coinbase’s trading volumes have fallen more than 40 per cent in the first quarter of this year

Coinbase is the U.S.’ largest cryptocurrency exchange. On the back of the loss, shares dropped by more than 15 per cent in after hours trading.

The Financial Times reports the drop is down to worse-than-expected earnings, and the fallout from the crypto bear market.

Revenue was $1.17 billion, which is down from predications of $1.5 billion.

The company says the figures reflect volatility in crypto, which date back to late 2021.

But executives believe the market conditions are “not permanent” and has its eyes set towards the future.

Monthly transacting users were 9.2 million, compared with 11.4 million in the fourth quarter and analyst estimates of 9.9 million.

Coinbase is expecting lower users in the upcoming second quarter. The exchange platform also believes services and subscription revenue will be “modestly lower” too.

It has also filed a shelf registration with the U.S. Securities and Exchange Commission, which it hopes will “offer and sell securities in the future”.

The world’s most popular cryptocurrency, Bitcoin has more than halved in value since its peak in mid-November.