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U.S.-based cryptocurrency exchange Coinbase has beaten its earnings forecast for the fourth quarter of 2022, but trading volumes continue to decline.
While transaction volume was down 12% from the previous quarter, Coinbase points to a 34% increase in subscriptions and services revenue as the reason for the 5% increase in total revenue for the quarter.
Fourth quarter and fiscal year 2022 financial results have been announced.
The letter to shareholders is available on the Investor Relations website at: https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
Coinbase reiterated its belief that its staking product is not a security, but staking revenue declined compared to the previous quarter as the decline in cryptocurrency prices outweighed increases in stake balances for all cryptocurrency tokens. Diminished.
Related: US Regulatory Crackdown Leaks $32 Million in Digital Assets: CoinShares
The exchange is currently facing a staking product investigation by the Securities and Exchange Commission (SEC). This is similar to the result of fellow crypto exchange Kraken settling with regulators for $30 million.
Coinbase said 2022 will be a “challenging year for the cryptocurrency market,” citing macroeconomic events and events such as the bankruptcies of crypto hedge fund Three Arrows Capital and crypto exchanges Voyager and Celsius. has created strong headwinds for the industry.