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Crypto exchange Coinbase saw a huge fall in its transaction revenues in the third quarter after activity fell amid a broader market downturn, but managed to cut its losses in half compared to the prior quarter.<\/p>\n
In its shareholder letter released on Nov. 3, the company shared<\/a> that transaction revenue had fallen from $655.2 million in the second quarter to $365.9 million, representing a decline of 44%.<\/p>\n The company cited poor macro conditions, with daily average crypto market capitalization falling 30%<\/a>\u00a0and trading volumes shifting away from the United States due to the lack of regulatory clarity<\/a>\u00a0as reasons for the decline.\u00a0<\/p>\n It also blamed the numbers on an increasing amount of retail customers holding, while advanced traders have been using other platforms with more complex products amid the bear market<\/a>.\u00a0<\/p>\n Despite the ailing numbers, Coinbase CEO and co-founder Brian Armstrong appeared bullish during the Q3 earnings call, commenting that the regulatory environment could be one of the \u201cbiggest unlocks\u201d to growing the industry and even allow for \u201cprices to go back up:\u201d<\/p>\n \u201cI think there\u2019s an opportunity at some point for the crypto prices to potentially decouple from the broader macro environment. And we don’t know if that\u2019s gonna happen, but I think it\u2019s one of the possibilities and regulatory clarity is one of the things that could help kick that off.\u201d<\/p><\/blockquote>\n During the earnings call, Coinbase\u2019s chief financial officer Alesia Haas was also asked whether positive earnings could be expected in the final quarter.<\/p>\n Haas responded by saying that it wasn\u2019t their primary focus, and they are looking to continue investing for growth throughout the cycle while minimizing losses, adding:<\/p>\n \u201cWhen we\u2019re in bull runs we\u2019re going to make profit, when we\u2019re in downturns we\u2019re going to take prudent losses.\u201d<\/p><\/blockquote>\n Coinbase appears to have been successful in that aim, with the latest earnings report showing that they have managed to reduce operating expenses by 38% from the previous quarter through staff cuts and other measures<\/a>.<\/p>\n