Coinbase Global Inc missed gauges for first-quarter income on Tuesday and posted a loss as turmoil in worldwide markets controlled investor appetite for risk resources remembering trading for cryptocurrencies. Shares of Coinbase plunged 12.7% to $63.71 in expanded exchanging after the cryptocurrency trade operator likewise revealed a fall in trading volumes and forecast an even bigger drop in the current quarter because of a decrease in crypto asset costs.
The cryptocurrency market has been roiled by extreme volatility due to economic and geopolitical uncertainties such as fears of rising inflation and the impact of Ukraine war, leading to a sharp drop in their prices.
Among its mix of crypto assets, bitcoin accounted for 24% of trading volume, up 16% from the prior quarter but down 39% from a year earlier.
Bitcoin has nearly halved from the record high hit in November last year as the world’s largest digital asset becomes a major target of governments and regulators looking to crack down on privately operated currencies.
Trading volumes fell to $309 billion for the quarter ended March 31 from $335 billion a year earlier. Retail trading took a big hit, with volumes tumbling 38% to $74 billion, although the institutional side grew 9% to $235 billion.
Coinbase reported a 35% slump in total revenue to $1.17 billion for the three months ended March 31. Analysts had expected revenue of $1.48 billion, according to IBES data from Refinitiv.
Net loss attributable to common shareholders was $429.7 million, or $1.98 a share, for the three months ended March, compared with net income of $387.7 million, or $3.05 a share, a year earlier.
Coinbase shares have shed 71% since their market debut last year though a direct listing.
Check the latest news about business news section for best information.