Coinbase, the largest cryptocurrency exchange, reported an enormous loss in both revenue and profit in the June quarter, recording a $1.1 billion net loss as revenue fell from $2.033 billion to $803 million from the previous quarter, a drop of nearly 60%.
Coinbase’s net revenue fell 31% in the first quarter compared to the previous quarter, owing to lower trading volume.
Q2 was a difficult quarter, with trading volume and transaction revenue both declining by 30% and 35% subsequently. Both metrics were affected by a variation in customer and market activity, driven by both macroeconomic and crypto credit factors, the company said late Tuesday after reporting its Q2 results.
On the expense front, it said, we’ve taken several measures to streamline our cost structure, comprising an 18% employee reduction in June.
The current downturn arrived quickly and furiously, and we are seeing customer behavior mirror that of previous down markets, the company said in a shareholder letter.
Total trading volume fell to $217 billion, a 30% decrease from the previous quarter.
