2022 was a tough year for the entire cryptocurrency market. While several firms went bankrupt, others had to make major cuts. Thousands lost their jobs in addition to the detrimental bear market. Many people believe that the notion will not be carried forward into 2023, but Coinbase has indicated a different narrative. The Coinbase CFO hinted at the possibility of another round of layoffs.
Alesia Haas revealed that the firm would carry out more layoffs in order to boost the exchange’s financial performance. It should be noted that Coinbase has trimmed its workforce several times in the last couple of months. More recently, toward the end of January, the firm let go of 950 employees. The U.S.-based exchange cut 18% of its staff in June 2022 as well. She said,
“We are looking to improve EBIDTA year over year. If we find we are not able to do so, we will right-size our expenses. We are nimble, we will take necessary steps.”
On the contrary, Coinbase’s fourth-quarter 2022 revenue was beyond expectations.
Coinbase’s revenue recovers while transaction volume dips
In a recent tweet, Coinbase revealed that its net revenue for Q4 2022, was at $605 million. The revenue for Q3 2022 was $589 million.
Although transaction volumes dropped 12% from the previous quarter, Coinbase attributed its 5% quarterly rise in income to a 34% increase in subscription and service revenues.
Additionally, staking income decreased compared to the preceding quarter. This decline came as cryptocurrency prices outpaced the rise in staked balances across the market. However, Coinbase restated its conviction that its staking products are not securities.
Amidst this, regulatory overhaul the exchange is looking to partner with New-York based Investor Exchange [IEX]. This platform is reportedly regulated.
Once its first partner, former FTX CEO Sam Bankman-Fried, was charged, IEX, led by seasoned trader Brad Katsuyama, hoped to establish the exchange again. An IEX spokesperson said,
“We continue to consider ways that we can help provide a regulatory path for digital asset securities, including conversations with regulators and other market participants, but have not finalized any specific proposal that includes any third parties.”