Coinbase Stocks Suffers 19.5% Drop After It Reports A Loss Of $430 Million 

On Monday, the shares of Coinbase are down 269% from their 52-week high of US$368.90 a share on November 9th. There was a drop of 19.5% in the stock after Coinbase reported a net loss of US$430 million in Q1 as trading volume decreased by 44%.

Coinbase, the US-based exchange, recorded a Q1 loss of US$430 million in comparison to a US$840 million profit in Q4 2021.

The monthly transacting users decreased 19% to 9.2 million in Q1 from 11.4 million in Q4 2021. 

The exchange forecasts trading volume and revenue to decrease further for Q2, in agreement with the crypto market downturn.

Coinbase also reveals that it will still be heavily investing in, as it says: “building the future of crypto.”

The drop in Coinbase shares was around 70% year-to-date to US$72.99, lower than the reference price of US$250 specified at the time of listing. 

Meanwhile, On Wednesday, the Nasdaq-listed cryptocurrency exchange announced that the non-fungible token (NFT) marketplace of Coinbase has made available to all customers after the beta version was launched to selected users in April. 

In October 2021, the US-based exchange made the announcement regarding its NFT marketplace, and more than three million customers are on the waitlist.

Currently, the platform runs without charging fees; however, the platform intends to add a fee structure in the future, as mentioned in the blog of April’s beta by the VP of products at Coinbase, Sanchan Saxena. 

Lately, there has been much attention on NFT transaction fees in the spotlight as the creator of Bored Ape Yacht Club, Yuga Labs, metaverse land, Otherside blocked the Ethereum network, leading to gas fees increasing upto thousands of dollars per transaction.

On Tuesday, Kraken, a cryptocurrency exchange, also launched a gas-free NFT marketplace. 

Coinbase also plans to add features to its NFT marketplace in the future, including support for multiple blockchains, minting, drops, and credit card purchases, Saxena added.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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