JAKARTA The crypto market has experienced a significant decline in recent months. This condition has an impact on a number of crypto companies including the US exchange giant Coinbase.
According to the latest report, Coinbase's revenue in 2022 decreased by 60 percent compared to 2021. Coinbase's revenue is estimated to reach US$3.2 billion (Rp49.9 trillion) this year. Meanwhile, last year, the exchange's revenue reached US$7 billion (equivalent to Rp109 trillion).
This information was conveyed by Coinbase CEO Brian Armstrong in an interview with David Rubenstein from Bloomberg. The decline in the company's revenue was caused by the prolonged bear market in 2022.
"This year with everything going down, you know, roughly half or less," said Brian Armstrong.
Meanwhile, although Armstrong claims that the exchange generated USD 7 billion last year, financial data firm FactSet revealed different data. FactSet claims that Coinbase will make USD 7.8 billion by 2022.
For 2022, FactSet has also released a Coinbase revenue projection. Based on its studies, the financial data company estimates Coinbase's annual revenue for the year is around $3.3 billion. But for now, revenue is said to be around $3.2 billion, a nearly 60 percent drop from the figure it reached in 2021.
The bear market is the biggest factor in declining crypto trading, especially since the collapse of Terra LUNA in May 2022. The collapse of Terra LUNA has had a major impact on other crypto industries, including Babel Finance, Three Arrows Capital, and BlocFi.
In early November, the crypto industry was hit again after crypto exchange giant FTX went bankrupt. Since then, the crypto market has plunged again. Bitcoin, which was previously traded at a price of 23,000 dollars, is now at the level of 17,000 dollars per BTC. The drop in BTC also dragged most cryptocurrencies in the market.
According to a Coinspeaker report, crypto exchange Coinbase, like some other crypto exchanges, has had a long and difficult year. Especially with regard to the number of nearly untrustworthy cryptocurrency prices, and the endless bankruptcy case that has hit the crypto industry. One of them is the collapse of the FTX exchange which is a former competitor to Coinbase and Binance.
In addition to the company's annual revenue, Nasdaq-listed Coinbase (COIN) shares also experienced a decline of more than 80 percent in 2022. FTX's collapse had a negative impact on other centralized crypto exchanges as investor confidence in CEX began to decline.
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