Coinbase predicts huge losses due to problems in the market

S&P Global Ratings has published a negative outlook on Coinbase's profitability for the next 12 months: the crypto exchange expects to see a decline in revenues and an increase in expenses.

«The negative outlook primarily reflects our view that over the next 12 months, Coinbase’s profitability could be pressured by increasing uncertainty about crypto asset prices, as well as the potential duration of the market downturn and a deteriorating economic backdrop,» — s&P Global Ratings said.

S&P experts also predicted a downgrade of the crypto exchange’s rating if the market downturn continues until next year and gradually drains companies. Coinbase has been on the market since 2012 and operates in more than 100 countries (it is worth noting that the crypto exchange does not operate in Ukraine, but the Coinbase Wallet is available to Ukrainians), but the experience and popularity of the crypto exchange cannot help during a bear market. Thus, on June 14, the company’s CEO Brian Armstrong announced restructuring plans, including the forced dismissal of 1, 100 employees. The reduction will leave Coinbase with about 5000 employees and will cost the company $ 40 million in related costs — almost all of which will be compensation packages.