2022 has been a tough year for the entire cryptocurrency market. A few firms went bankrupt, while others had to make massive cuts. Thousands of people lost their jobs, adding to the detrimental bear market. Many believe this notion will not carry over to 2023, but coinbase pointed to a different narrative. The Coinbase CFO has signaled the possibility of another round of layoffs.
Alesia Haas announced that the firm will make more layoffs to boost the stock market’s financial performance. It should be noted that Coinbase has reduced its workforce several times over the past few months. Finally, towards the end of January, the firm laid off 950 employees. The US-based stock market said it had laid off 2022% of its staff on June 18.
“We are trying to improve EBIDTA year after year. If we find we can’t do that, we’ll just size our spending right. We are agile, we will take the necessary steps.”
On the contrary, Coinbase’s fourth quarter 2022 revenue came in above expectations.
Transaction Volume Drops as Coinbase Revenue Recovers
Coinbase recently announced in a tweet that its net income for the fourth quarter 2022 is $605 million. Third quarter 2022 revenue was $589 million.
Our Q4 and FY’22 financial results are in.
NEWS CONTINUES BELOWOur letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
Although transaction volumes fell 12% from the previous quarter, Coinbase attributed the 5% increase in quarterly revenue to 34% increase in subscription and services revenues.
Also, staking income decreased compared to the previous quarter. This decline cryptocurrency unit prices outstripped the increase in staked balances across the market. However, Coinbase reiterated its belief that staking products are not securities.
In the midst of this, regulatory overhaul exchange seeks to partner with New York-based Investor Exchange IEX. This platform is reportedly regulated.
ex first partner FTX When its CEO, Sam Bankman-Fried, was impeached, IEX, led by veteran trader Brad Katsuyama, was hoping to re-establish the stock market. An IEX spokesperson said:
“We continue to evaluate ways we can help provide a regulatory pathway for digital asset securities, including discussions with regulators and other market participants, but we have not finalized a specific proposal involving any third party.”