{"id":1768453,"date":"2022-12-07T16:30:00","date_gmt":"2022-12-07T21:30:00","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/?post_type=station&p=1768453"},"modified":"2022-12-07T18:04:26","modified_gmt":"2022-12-07T23:04:26","slug":"coinbase-ceo-says-trading-revenue-has-fallen-to-roughly-half-what-it-was-last-year","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/coinbase-ceo-says-trading-revenue-has-fallen-to-roughly-half-what-it-was-last-year\/","title":{"rendered":"Coinbase CEO says trading revenue has fallen to \u2018roughly half\u2019 what it was last year"},"content":{"rendered":"
Coinbase CEO Brian Armstrong has revealed that the exchange\u2019s trading revenue has declined by approximately 50% or more when compared with last year, according to a Dec. 7 report from Bloomberg.<\/p>\n
Armstrong made the statement as part of an interview with the David Rubenstein Show. When asked about the exchange\u2019s revenue, he stated<\/a> that the company did $7 billion in revenue and $4 billion in earnings in 2021, but \u201cit\u2019s looking, you know, about roughly half that or less\u201d in 2022.<\/p>\n Bloomberg said that a spokesperson for Coinbase later clarified that 2022 revenue, not earnings, was projected to be less than half what it was in 2021.<\/p>\n Coinbase had previously stated<\/a> in a letter to investors that it expected to post a roughly $500 million loss in adjusted EBITDA for 2022. Adjusted EBITDA is an earnings metric that doesn\u2019t include interest, taxes, depreciation or amortization.<\/p>\n In the interview, Armstrong was asked if he thinks the FTX bankruptcy<\/a> will hurt the crypto industry. He admitted that it is \u201ca bit of a black mark for the industry\u201d but argued that what happened is not very different from traditional financial scandals like Bernie Madoff and Enron. <\/p>\n Armstrong also said that he thought regulation \u201cwon\u2019t be a bad thing\u201d and that the FTX collapse would \u201cserve as a wakeup call\u201d that would lead to clearer regulations in the U.S.<\/p>\n When asked about which regulatory body should have authority over crypto exchanges, the Coinbase CEO emphasized that different cryptocurrencies have different use cases, and they don\u2019t all fall into a single category, so different cryptocurrencies will have to be regulated by different agencies.<\/p>\n 2022 has been a tough year for crypto exchanges, including Coinbase. In May, the TerraUSD (TUSD) stablecoin lost its peg to the U.S. dollar<\/a>, causing fear to spread through the market. In July, crypto lender Celsius filed for bankruptcy<\/a> after being unable to process withdrawals partially due to the fallout from the TUSD collapse.<\/p>\n Related: <\/em><\/strong>Crypto will be regulated as securities \u2014 ICE boss and Senator Warren<\/em><\/strong><\/a><\/p>\n Just as the crypto market was beginning to recover, the second-largest centralized crypto exchange, FTX, had a liquidity crisis and was unable to process withdrawals<\/a>. It later began bankruptcy proceedings as well.<\/p>\n