The price of Coinbase stock COIN hit a new all-time low of $32.40, plummeting around 87% over the year
On the 28th of December, the price of the stock of Coinbase, the largest cryptocurrency exchange in America, hit a new all-time low of around $32.40. According to data from Google Finance, over the past five days, the price of Coinbase share COIN plummeted by more than 6%.
This year, 2022, has been a brutal one for all the cryptocurrencies and crypto-related firms, as the price of all cryptocurrencies hit new all-time lows, several crypto firms filed for bankruptcy, including the collapse of FTX, which was once the biggest crypto exchange in the world and now is nothing. The yearly situation for Coinbase is also the same, as the price of COIN decreased by almost 87% over the year. Last month has been very brutal for COIN, as the stock price plummeted more than 23% in the past month.
This year, Coinbase, the third-largest cryptocurrency exchange by trading volume, has been hit hard by regulation-related fears and the collapse of FTX, which diminished investor confidence in the sector. It’s not only the stock price that decreased, as the quarterly revenues of the exchange firm also plummeted.
In the third quarter of 2022, the exchange company reported net revenue of $576 million, posting a 28% decline from the previous quarter’s revenue, which was around $803 million. Moreover, the transaction revenue of Coinbase also fell around 44% quarter-over-quarter. The reason behind this transaction revenue is likely related to the less user activity on the exchange platform.
To address these problems, which the exchange has been facing since the start of the year, Coinbase has undertaken some harsh measures, as it laid off 18% of its staff, around 1,100 employees, in June. However, despite the plummeting price of COIN, several prominent investors have shown their interest in the stock. On the 14th of December, Cathie Wood’s investment company Ark Invest purchased 296,578 Coinbase shares, which it added to its exchange-traded funds.