By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Sign In
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
  • Home
  • News
    • Cryptopedia
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • Altcoin News
    • Latest Metaverse & NFT News
      • Metaverse & NFT Games
      • Virtual Land
    • Exchanges News
    • Policy & Regulation
    • Web Stories
  • Press Release
    • Sponsored Article
    • Submit Press Release
  • Interviews
    • Opinion
  • Expert Alliance
    • About Expert Alliance
    • Expert Alliance Benefits
    • Experts List
    • Apply for Expert Alliance
  • Guide
    • NFT Review
    • Game Review
    • Submit NFT Project
  • Videos
  • Events
Search
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit Press Release
  • Submit NFT Project
© 2022 NFTStudio24.com News Network. All Rights Reserved.
Reading: Is Coinbase dissolving? Q1 report and bear market ignites fear of bankruptcy among creditors
Share
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
Search
  • Home
  • News
    • Cryptopedia
    • Latest Metaverse & NFT News
    • Exchanges News
    • Policy & Regulation
    • Web Stories
  • Press Release
    • Sponsored Article
    • Submit Press Release
  • Interviews
    • Opinion
  • Expert Alliance
    • About Expert Alliance
    • Expert Alliance Benefits
    • Experts List
    • Apply for Expert Alliance
  • Guide
    • NFT Review
    • Game Review
    • Submit NFT Project
  • Videos
  • Events
Have an existing account? Sign In
Follow US
  • About us
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit NFT Project
  • Careers
  • Contact us
  • Privacy Policy
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
  • Global
  • Japan
  • South Asia
  • Partners
  • Community
HOME > News > CRYPTOPEDIA > EXCHANGES > Is Coinbase dissolving? Q1 report and bear market ignites fear of bankruptcy among creditors
EXCHANGESNews

Is Coinbase dissolving? Q1 report and bear market ignites fear of bankruptcy among creditors

news room
Posted news room May 15, 2022 643 Views 5 Min Read
Updated 2022/05/20 at 1:40 AM
Coinbase, Coinbase loses investors, coinbase logo, coinbase, coinbase wallet, coinbase ventures
SHARE

Coinbase Global Inc., a global crypto exchange, recently released its first quarter report for 2022 that detailed its underwhelming performance, igniting fear among creditors amidst the crypto crash. However, the Coinbase CEO says “they are in an even stronger position given our balance sheet.” 

Contents
Is Coinbase dissolving?Final words

Coinbase’s Q1 report detailed it lost over $450 million and a 27% revenue decline compared to last year’s earnings. As a leading crypto exchange, many creditors have had high hopes for Coinbase. The exchange has released new projects and collaborations with various crypto companies to establish itself as a top company. However, the report caused creditors to be skeptical about Coinbase’s future. 

This report hinted at Coinbase facing bankruptcy which pummeled down prices to new lows. The prices went by 23% to $56.04, a far low from its ideal closing price in April when it went public at $328.28. The recent data from Trace Bonds shows Coinbase junk bonds offering also dropped drastically to 17% and 5.2% with prices at $63 and $62.31  following its Q1 report on Tuesday. 

With the recent crypto crash and bearish market, Coinbase had already been struggling to maintain its condition, but the fear of bankruptcy pushed down the bond prices even lower. Altogether the crypto exchange dropped by 20% and 19% since the start of May. 

Coinbase, Coinbase loses investors, coinbase logo, coinbase, coinbase wallet, coinbase ventures

The sudden price decline for junk bonds is due to the massive sell-off in the crypto market due to the crypto crash. 

Junk bonds are a type of corporate debt issued to companies with no or low investment-grade credit ratings. These bonds are a risky investment but pay back with high-yield bonds. The companies borrow a specific amount of money through the junk bond offering and set an interest rate with the date of return that they will expend on top of the borrowed capital.

Previously, when Coinbase went public, it dropped its junk-bond offering and managed to earn around $2 billion. The investors’ trust in the crypto exchange’s success brought demand to the public market. The junk bond began with the price of $100 and then slowly dropped to lows, indicating investors’ loss of trust.

Furthermore, the traders are in huge chaos seeing the bearish pattern in the global crypto market, directly affecting the exchange’s revenue. According to various sources, Coinbase’s second quarter report of 2022 might show even lower earnings than its Q1 report. 

Not your keys, not your crypto. This is from coinbase. pic.twitter.com/CaIzQBYQ38

— Richard Heart (@RichardHeartWin) May 11, 2022

Is Coinbase dissolving?

Coinbase lowering prices for bonds and stocks indicate that there is no light of hope for it in the market. Despite being a crypto exchange, Coinbase fails to recover from its losses. 

However, this doesn’t mean Coinbase will completely dissolve. The CEO Brian Armstrong assured creditors that the crypto exchange is still going strong amidst the crypto crash. He blames the negativity surrounding the bear market as the cause of the investors’ skepticism. He said, “it can be scary to see our stock price down with associated negative headline.” 

The CEO also advised, “In times like these we need to step back and zoom out. Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet.”

 Armstrong assured, “This last bull cycle has generated tremendous profit and cash that adds to our resiliency, and we have built an incredible team with some of the best talents in the world.”

2/ We have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties. https://t.co/lwmgb1kFtA

— Brian Armstrong – barmstrong.eth (@brian_armstrong) May 11, 2022

Final words

As cryptocurrencies continue to tank to new lows, Coinbase is also struggling to keep up with the market. According to Chief Financial Officer Alesia Haas, Coinbase still stands firm as a crypto exchange in these negative conditions and will manage to make this year their “investment year.” 

Although the Q1 reports show a declining pattern for Coinbase, the officials from the exchange are reassuring that better days are waiting for Coinbase once the market recovers from the crypto crash. 

However, only future events will show whether Coinbase falls into the well of bankruptcy or manages to pick itself back up and recover from the losses.

Sign Up For Daily NFT Drops

Don't miss the next NFT drops!!!
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article cult dao, cult, cult blockchain, Anonymous to support Cult DAO’s manifesto against Russia and other unjust governments
Next Article OPENSEA VERIFICATION OpenSea hunts NFT copymints with new verification features
Leave a comment

Leave a Reply

You must be logged in to post a comment.

Don’t miss the NFT Drops! Sign up Now

I have read and agree to the terms & conditions

Latest News

Oasys and SBI VC Trade team up to bring new wallet solution for blockchain gaming in Japan
Oasys and SBI VC Trade team up to bring new wallet solution for blockchain gaming in Japan
BLOCKCHAIN NEWS EXCHANGES News WEB3 March 25, 2023
DeFi protocol DefiLlama has resolved its internal conflicts 1
DeFi protocol DefiLlama has resolved its internal conflicts
CRYPTOPEDIA News WEB3 March 21, 2023
Crypto Fear and Greed Index has reached its highest level
Crypto Fear and Greed Index has reached its highest level
BITCOIN NEWS News March 21, 2023
Join us
Ad imageAd image

You Might also Like

Oasys and SBI VC Trade team up to bring new wallet solution for blockchain gaming in Japan
BLOCKCHAIN NEWSEXCHANGESNewsWEB3

Oasys and SBI VC Trade team up to bring new wallet solution for blockchain gaming in Japan

March 25, 2023
DeFi protocol DefiLlama has resolved its internal conflicts 1
CRYPTOPEDIANewsWEB3

DeFi protocol DefiLlama has resolved its internal conflicts

March 21, 2023
Crypto Fear and Greed Index has reached its highest level
BITCOIN NEWSNews

Crypto Fear and Greed Index has reached its highest level

March 21, 2023
Project AI Powered Trading Platform Accused of Draining 1M from Users
AIBLOCKCHAIN NEWSNews

Project ‘AI-Powered’ Trading Platform Accused of Draining $1M from Users

March 20, 2023
//

NFTStudio24 delivers the latest NFT news to its global audience. We are committed to reporting mainstream and emerging talent via exclusive press releases, podcast interviews, NFT rankings, and much more.

GET IN TOUCH

  • About us
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit NFT Project
  • Careers
  • Contact us
  • Privacy Policy

Experts Alliance

  • Experts Alliance
  • About Alliance
  • Alliance Benefits
  • Membership requirements
  • Apply Alliance
//

Subscribe to our newsletter to get our newest articles instantly!

I have read and agree to the terms & conditions
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
Follow US

© 2022 NFTStudio24.com News Network. All Rights Reserved.

Removed from reading list

Undo
Join us metaverse Join us metaverse
Welcome Back!

Sign in to your account

Register Lost your password?