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Coinbase shares hit by sell-off

Coinbase shares hit by sell-off

Shares of Coinbase Global Inc dropped after the release of disappointing first quarter earnings results. Furthermore, the biggest crypto exchange in the US reported that its trading volume was expected to fall in the second quarter.

The company's share price slumped by 14% at closing. The number of monthly transactions has fallen to 9.2 million from 9.5 million in the previous quarter. Coinbase expected users and trading volume to decline in the current quarter as well, but left its outlook for 2022 largely unchanged.

According to Bloomberg, Coinbase's revenues in Q1 2022 plummeted to $1.17 billion compared to $1.48 billion in Q4 2021. The crypto exchange released its earnings results amid a wider sell-off of speculative assets.

Bitcoin has lost more than 50% of its value compared to its all-time high in November, forcing many retail traders to remain at the sidelines.

The crypto exchange's income is highly volatile. Shares of Coinbase, which receives most of its income from trading fees, have plummeted by more than 70% since the company went public a year ago.

Coinbase shares hit by sell-offThe exchange is striving to diversify its income and reduce its dependence on trading fees. The company offers special crypto savings accounts to its users. Furthermore, Coinbase is planning to launch trading in crypto derivatives. Last week, the company opened its own NFT marketplace, but its adoption has been slow.

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