Coinbase Global is falling out of the coveted list of the world’s top 10 digital-asset exchanges by volume as the markets battle a cryptocurrency winter.
The latest data for this month so far shows the company is now the 14th largest exchange, down from the fourth-biggest in late 2021, according to Mizuho Securities.
The main exchange for digital tokens in the US only had a 2.9 per cent average market share among the top 30 exchanges globally so far this month, Mizuho said. That’s down from 3.6 per cent average in the second quarter of this year and 5.3 per cent in the first quarter, the report said.
It is the latest sign that Coinbase’s profit trajectory looks problematic, according to Mizuho.
“We worry that the competitive nature of the industry is likely to require further increases in sales and marketing spend over time, and can also weigh on Coin’s take rates,” Mizuho analysts said in the report. “All this, coupled with subdued volume trends, is likely to weigh on profitability moving forward, in our view.”
Coinbase didn’t immediately return a request for comment.
As cryptocurrencies prices collapsed in the last eight months, erasing about $2 trillion in market value, the trading volumes of most large exchanges dwindled as retail traders remained on the sidelines.
Coinbase is suffering “because their business model is seeing structural issues: suffering from a perfect storm of more competition in a declining market while take rates are perceived to be too high and unsustainable”, Mizuho analyst Dan Dolev said in an email.
Coinbase said in June that it would lay off 18 per cent of staff after a streak of aggressive hiring. Other exchanges, such as Gemini Trust, have laid off workers as well.
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The biog
Hobby: Playing piano and drawing patterns
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
The bio:
Favourite holiday destination: I really enjoyed Sri Lanka and Vietnam but my dream destination is the Maldives.
Favourite food: My mum’s Chinese cooking.
Favourite film: Robocop, followed by The Terminator.
Hobbies: Off-roading, scuba diving, playing squash and going to the gym.
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
