Coinbase users can expect smiles or heartbreak in 2023 amid an extended crypto winter

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Coinbase did not give satisfactory results to investors in 2022. Bankruptcy of FTX, arrest of its co-founder and market turmoil caused by the event. CEO Brian Armstrong’s strategy for 2023.

Major crypto exchange Coinbase is going through several ups and downs amid a prolonged crypto winter, frauds and bankruptcies. The recent market situation has not even spared the crypto titan.

Not so good year

As reported by CNN, Coinbase Global went public on April 14, 2021, with a valuation of nearly $100 billion, as they profited from the surge in the value of bitcoin (BTC), the ethereum (ETH) and others. In the same year, BTC hit an all-time high of nearly $69,000, which is now down over 75%.

Coinbase shares fell almost 85% in mid-December 2022, with several lows seen this month. Its 52-week high is $281.98 and its yearly low is $32.95, according to Nasdaq. The current trend is supported by crypto exchange Sam Bankman-Frieds FTX filing for bankruptcy following its arrest in the Bahamas, causing significant turmoil in the crypto market.

As Fortune reported, Brain Armstrong, CEO of Coinbases, noted that the company’s revenue could drop by 50%. Another major black swan after Terra Luna Crash, has sparked fear and uncertainty among crypto investors. Third quarter 2022 revenue was estimated to be only 25% lower than fourth quarter 2021.

According to Bloomberg, CEO Armstrong said that last year in 2021 we had about $7 billion in revenue and about $4 billion in positive EBITDA, and this year with everything going down it seems , you know, about half or less. Previously, Coinbase calculated an estimated loss of nearly $500 million in 2022.

According to the New York Times, Coinbase laid off 18% of its workforce in June, after the collapse of TerraUSD. The crypto market crash in May caused its stock price to drop 60%. The largest crypto exchange in the United States saw a sharp decline in revenue in the first quarter of 2022 of $1.17 billion, a 27% drop from last year’s revenue.

Plan to bounce back

According to media reports, Coinbase chose a second round of layoffs in November 2022, impacting more than 60 people in the recruiting and institutional and onboarding team. CEO Armstrong remains optimistic despite the poor performance and adversities in the crypto market.

9/ I am optimistic that we can make significant progress on the above in 2023 and pass crypto legislation. Coinbase will work hard to achieve this, please contact us if you are a policy maker who would like to see more clarity on crypto regulations.

— Brian Armstrong (@brian_armstrong) December 20, 2022

According to the Coinbase report, under the title 2023 Crypto Market Outlook, Coinbase will work on three major themes to reclaim the backdrops for crypto winter 2022, including relative market liquidity, ecosystem maturity, and sustainable tokenomics. .

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and away from traditional currency exchange systems. She is also intrigued by blockchain technology and how it works.

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