{"id":466978,"date":"2022-06-24T05:07:42","date_gmt":"2022-06-24T02:07:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/moodys-downgrades-coinbase-due-to-bear-warns-it-may-not-be-the-last\/"},"modified":"2022-06-24T05:07:42","modified_gmt":"2022-06-24T02:07:42","slug":"moodys-downgrades-coinbase-due-to-bear-warns-it-may-not-be-the-last","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/moodys-downgrades-coinbase-due-to-bear-warns-it-may-not-be-the-last\/","title":{"rendered":"# Moody\u2019s downgrades Coinbase due to bear: Warns it may not be the last"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36e95817730\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36e95817730\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/moodys-downgrades-coinbase-due-to-bear-warns-it-may-not-be-the-last\/#%E2%80%9D_Moodys_downgrades_Coinbase_due_to_bear_Warns_it_may_not_be_the_last_%E2%80%9C\" >&#8221; Moody\u2019s downgrades Coinbase due to bear: Warns it may not be the last &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Moodys_downgrades_Coinbase_due_to_bear_Warns_it_may_not_be_the_last_%E2%80%9C\"><\/span>&#8221; Moody\u2019s downgrades Coinbase due to bear: Warns it may not be the last &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvOTA2OTJkOTUtNDZjYS00Mzk0LWI3NGQtM2U4MGI2M2MyYWFhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Credit ratings agency Moody\u2019s has downgraded the Corporate Family Rating (CFR) and guaranteed senior unsecured notes of crypto exchange Coinbase, and stated that both ratings have been placed under review for further downgrade.<\/p>\n<p>The CFR, a rating assigned to reflect Moody\u2019s opinion of a company\u2019s ability to honor its financial obligations, was downgraded from Ba2 to Ba3 which is considered as below non-investment grade.<\/p>\n<p>Senior unsecured notes are a type of debt a company holds that is not backed by any assets and in the event of bankruptcy must be repaid before any others. Moody\u2019s downgraded Coinbase\u2019s from Ba1 to Ba2.<\/p>\n<p>Earlier in May, Cointelegraph reported Coinbase\u2019s junk bonds tanked in response to an underwhelming first quarter and since the report, the bonds have <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finra-markets.morningstar.com\/BondCenter\/BondDetail.jsp?ticker=C996374&amp;symbol=COIN5259271\">continued<\/a> to fall a further 9.5%.<\/p>\n<p>In its <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.moodys.com\/research\/Moodys-downgrades-Coinbase-senior-debt-Ba2-and-places-ratings-under--PR_467258?WT.mc_id=AM%7eUmV1dGVyc05ld3NfQU1QU19TQl9OUl9DVl9SYXRpbmdfTmV3c19BbGw%3d%7e20220623_PR_467258\">rationale<\/a> for the downgrades, Moody\u2019s highlighted Coinbase\u2019s revenue model \u201cis tied to trading volumes, transaction activity per user and overall crypto asset prices.\u201d It said the steep price decline in crypto over the past months has caused customer trading activity to wane, which in turn caused weaker revenue and cash flow to the company.<\/p>\n<p>The uncertain environment forced Coinbase to layoff about 18% of its staff on June 14. But even with this measure, Moody\u2019s said it expects Coinbase\u2019s profitability to \u201cremain challenged in the current environment\u201d.<\/p>\n<p>Competition for customers has also been heating up in the United States after Binance.US began offering zero-fees spot trading for Bitcoin (BTC). The offer follows in the footsteps of trading platform Robinhood which pioneered no-commission crypto-trading in 2018.<\/p>\n<p>In a bid to attract users to the platform, on June 23 Coinbase <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CoinbaseAssets\/status\/1539637966473232386\">added<\/a> five new Ethereum (ETH) ERC-20 tokens <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.coinbase.com\/send-and-receive-crypto-on-multiple-networks-starting-with-polygon-and-solana-e03d8480fe54\">plus<\/a> the ability for users to send and receive some assets on the Polygon (MATIC) network along with USD Coin (USDC) on Solana (SOL).<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Coinbase to shut down Coinbase Pro to merge trading services<\/em><\/strong><\/p>\n<p>Moody\u2019s said it could call out for further downgrades should crypto prices continue to fall and if trading volumes on the exchange remain the same or fall further. It will also look at whether the firm can reduce expenses, its ability to maintain talent as well as potential \u201ccrypto asset regulatory developments.\u201d<\/p>\n<p>The ratings agency added that Coinbase\u2019s ratings could be upgraded again in the future if it can generate a profit even during a bear market and diversifies its revenue through other streams not associated with trading and cryptocurrency prices, noting that crypto transaction-based revenue represented 87% of Coinbase\u2019s net revenue in Q1 2022.\u00a0<\/p>\n<p>Coinbase&#8217;s shares were up 13.4% to close at $58.88 on Thursday, but fell just over 1% in after hours trading. Year to date, its shares are down nearly 77%.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/moody-s-downgrades-coinbase-due-to-bear-warns-it-may-not-be-the-last\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Moody\u2019s downgrades Coinbase due to bear: Warns it may not be the last &#8220; Credit ratings agency Moody\u2019s has downgraded the Corporate Family Rating (CFR) and guaranteed senior unsecured notes of crypto exchange Coinbase, and stated that both ratings have been placed under review for further downgrade. The CFR, a rating assigned to reflect&#8230;<\/p>\n","protected":false},"author":1,"featured_media":466979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvOTA2OTJkOTUtNDZjYS00Mzk0LWI3NGQtM2U4MGI2M2MyYWFhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74937,74956,74860,75917,75541,117,71407],"class_list":["post-466978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-price","tag-coinbase","tag-cryptocurrency-exchange","tag-exchanges","tag-volatility","tag-business","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/466978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=466978"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/466978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/466979"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=466978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=466978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=466978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}