The disclosure of the third quarter earnings report by the cryptocurrency exchange company, Coinbase saw a large number of losses for the third quarter of 2022 exceeding the expectations of analysts.
Coinbase has lost $545 million despite generating $400 million in profit last year.
The streak, results plunged more than 50% compared to the previous year as traders and retail investors are said to have left the crypto market during the fall season.
On record, the number of users on Coinbase shrank throughout the year compared to 9 million users in the previous quarter and 9.2 million in the first quarter.
However, the company reported having monthly active users in the third quarter of 8.5 million despite analysts forecasting 7.54 million.
Meanwhile, Coinbase's stock price is down more than 75% this year while its shares are up 5% at $58.65 shortly after they plunged 8% at the market close.
It is understood that Coinbase previously opened the opportunity to hire more employees who are interested in learning and developing crypto after the company is growing rapidly.
However, the opposite happened in 2022 when the crypto market began to change direction with prices making a drastic fall and resulting in many businesses acting to reduce the number of employees.
As such, Coinbase is said to have laid off more than 1,000 employees or 18% of its workforce.
