Coinbase is one of the big names in the cryptocurrency industry. While this market has been facing great difficulties since May, with a fairly significant drop in value, the American giant has been very strongly impacted according to information from Dan Doley, analyst at Mizuho Securities USA LLC . The market place is currently in 14th position in the ranking of trading platforms in terms of volume of transactions.
Coinbase is far from having said its last word
A vertiginous fall if we compare with his fourth place last November. In detail, the 1.2 billion dollars were exchanged in July against 7 billion in November. Coinbase’s setbacks do not stop there, since the company is no longer in pole position with regard to bitcoins held, it is overtaken by Binance, whose users accumulate 600,000.
Which makes analysts say:
We are concerned that the competitive nature of the industry is likely to necessitate further increases in sales and marketing spending over time, and may also weigh on Coinbase’s price rates. All of this, coupled with reduced volume trends, is likely to weigh on profitability going forward, in our view.
These results have unfortunate consequences for Coinbase. As reminded BFMthe company saw its results fall, and consequently had to resolve to part with 18% of its workforce, or 1,100 of its 4,900 employees.
However, Coinbase has of course not said its last word. In a blog post, the company recently announced its intention to continue its international expansion despite the ongoing crisis.
” We are already on the ground in the UK, Ireland and Germany. In addition, we are developing in France, Italy, Spain and the Netherlands. In all of these markets, our goal is to launch the Coinbase suite of products for individuals, institutions, and developers. “, promises the platform.