Coinbase, A Cryptocurrency Exchange that Operates in the United States, has Disclosed that Its Revenue for the Final Quarter of 2022 has above Projections. This Comes Despite the fact that the Exchange’s Transaction Volume has been Steadily Declining over the last Several Months.
The Exchange Detailed a net revenue for the Quarter of $605 million, which was Significantly more than the revenue expectation of $589 million that was Supposedly Provided by Wall Street industry professionals.
Coinbase detailed a 12% Decrease in Transaction Volumes in Comparison to the first quarter. Despite this, the business credited its 5% improvement in total revenues for the period to a 34% increase in membership and service fee income.
Despite Coinbase’s Repeated Assertions that the business Doesn’t consider its Staking Products to be Securities, Staking Revenue for the Company has Decreased when Compared to the Earlier quarter. This is due to the fact that the fall in the Value of Cryptocurrencies has been bigger than the Overall Growth in the amounts of Staked bitcoin.
A Request of the Exchange’s Staking Products is now being carried on by the United States Securities and Exchange Commission. This request is very similar to the one that prompted its Opponent, the Cryptocurrency Exchange Kraken, reaching a Settlement with the Regulator for the amount of $30 million. Specifically, this Investigation is looking into whether Kraken Engaged in any Illegal Activity.
According to Coinbase, 2022 was a “Tough year for Crypto Markets,” With the Industry Confronting Substantial headwinds due to both Macroeconomic Developments and Episodes, for example, the Bankruptcy of Crypto Hedge fund Three Arrows Capital and exchanges Voyager and Celsius, for example, is the failure of the crypto hedge fund Three Arrows Capital.
Coinbase Attributed these Headwinds to the fact that the Industry was operating in a highly Competitive Environment.