Coinbase Global Inc’s revenue is set to reduce by half this year, the cryptocurrency exchange tweeted on Wednesday, as digital assets reel from a sector-wide rout worsened by a string of high-profile collapses that shattered investor confidence.
“(Chief Executive Officer Brian Armstrong) indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue,” the company said in a tweet.
Cryptocurrencies wiped away nearly $2 trillion from the sector as higher interest rates and exacerbating worries of an economic downturn cratered prices that eliminated key players such as Voyager Digital, Three Arrows Capital and Celsius Network.
But the bigger blow to digital assets came since larger crypto exchange FTX filed for bankruptcy protection. Its swift fall from grace followed heavy speculation about its financial health that triggered $6 billion of withdrawals in just 72 hours.
The expected plunge in revenue was first reported by Bloomberg News on Wednesday, citing an interview with Armstrong.