Coinbase Plunges After Reporting Lower Than Forecast Revenue | Crypto News

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Coinbase reported revenue of $ 1.24 billion, lower than analysts’ forecast of $ 1.57 billion.

Shares of Coinbase Global Inc. fell nearly 12% in post-trade trading after the largest US cryptocurrency exchange released third-quarter results that missed Wall Street estimates.

Coinbase, which blamed the market turmoil and falling prices for part of the third quarter, reported revenue of $ 1.24 billion, below the $ 1.57 billion forecast by analysts.

Key ideas

Coinbase said the number of monthly transaction users on its platform reached 7.4 million, up from 8.8 million in the second quarter. Its verified users have grown to 73 million.

The company also updated its average monthly usage guidelines for transactions across the year. It now expects between 8 million and 8.5 million such users, against 5.5 million to 8 million expected in August.

Coinbase benefited from the listing of the popular Shiba Inu meme token with investors in September. That, combined with a bullish crypto market pushing more investors to step in, has resulted in increased downloads of Coinbases’ main mobile app.

Coinbase is also diversifying its services, with plans to launch derivatives as well as a platform to trade non-fungible tokens. The NFT business could prove to be very lucrative: Revenues from established markets like OpenSea have exploded and OpenSea sees a 2.5% reduction in transactions.

At the same time, in September, Coinbase had to suspend its plans for Lend, which was supposed to allow users to earn interest on the coins, due to pressure from the Securities and Exchange Commission.

The company has stepped up its customer service in response to user complaints.

While Coinbases shares slumped after its debut in April as a public company, it hit an all-time high on Monday and has risen around 40% since they started trading.

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