{"id":542418,"date":"2023-01-23T09:16:23","date_gmt":"2023-01-23T06:16:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-cut-costs-and-bolstered-rep-but-profits-remain-challenged-analysts\/"},"modified":"2023-01-23T09:16:23","modified_gmt":"2023-01-23T06:16:23","slug":"coinbase-cut-costs-and-bolstered-rep-but-profits-remain-challenged-analysts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-cut-costs-and-bolstered-rep-but-profits-remain-challenged-analysts\/","title":{"rendered":"# Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts"},"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-6a408789ae396\" 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-6a408789ae396\" 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\/coinbase-cut-costs-and-bolstered-rep-but-profits-remain-challenged-analysts\/#%E2%80%9D_Coinbase_cut_costs_and_bolstered_rep_but_profits_remain_challenged_Analysts_%E2%80%9C\" >&#8221; Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Coinbase_cut_costs_and_bolstered_rep_but_profits_remain_challenged_Analysts_%E2%80%9C\"><\/span>&#8221; Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Cryptocurrency exchange Coinbase won\u2019t escape from the profitability challenges it will face from the crypto market downturn, despite having a strong brand and credibility in the crypto market, according to investment analysts.<\/p>\n<p>Credit rating firm Moody\u2019s released a note on Coinbase on Jan. 19 discussing its downgrade of Coinbase\u2019s senior debt and corporate family rating (CFR) \u2014 a rating assigned to reflect the opinion of a company\u2019s ability to honor its financial obligations.<\/p>\n<p>Coinbase\u2019s CFR and senior debt were re-graded to B2 and B1 from Ba3 and Ba2 respectively, indicating the firm is \u201cnon-investment grade\u201d and \u201cspeculative and subject to high credit risk\u201d according to Moody\u2019s.<\/p>\n<p>The firm noted that Coinbase is suffering from \u201csubstantially weakened revenue and cash flow generation\u201d due to \u201cchallenging conditions,\u201d specifically depressed crypto prices and lower trading activity.<\/p>\n<p>The market conditions saw Coinbase lay off 20% of its employees, around 950 people, on Jan. 10, its second wave of recent major layoffs following its June 2022 18% headcount slash\u00a0in a bid to cut cos<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/9da5ce93-f526-4885-bd8f-fdac72873b62.jpg\"><figcaption style=\"text-align: center;\"><em>Coinbase CEO Brian Armstrong at a conference in 2018. In the most recent round of layoffs, he said the firm needed \u201cthe <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate operational efficiency to weather downturns in the crypto market.\u201d Image: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/techcrunch\/29603361687\/\"><em>Flickr<\/em><\/a><\/figcaption><\/figure>\n<p>However, despite Coinbase\u2019s bid to preserve liquidity, Moody\u2019s still expected \u201cthe company\u2019s profitability to remain challenged.\u201d<\/p>\n<p>The bankruptcy of its crypto exchange peer, FTX, is a cause for heightened concern and uncertainty regarding crypto regulation according to Moody\u2019s.<\/p>\n<p>It said a sudden move by regulators in the crypto industry could negatively impact Coinbase\u2019s revenue through increased costs of regulatory compliance.<\/p>\n<p>Moody\u2019s added, however, that increased oversight \u201ccould ultimately favor the relatively more mature and compliant crypto-asset platforms such as Coinbase.\u201d<\/p>\n<p>Meanwhile, a separate note from analysts at JPMorgan argued that Coinbase\u2019s credibility and reputation in the industry have strengthened after recent collapses. <\/p>\n<blockquote><p>\u201cWhile the crypto-ecosystem has suffered further meaningful credibility issues, Coinbase has emerged with its credibility and brand strengthened \u2014 at least relatively.&#8221;<\/p><\/blockquote>\n<p>The financial firm&#8217;s analysts which maintained a rating of \u201cneutral\u201d for Coinbase in its latest note said Coinbase could even be a \u201cbeneficiary of the challenges\u201d other exchanges have faced in the wake of FTX.<\/p>\n<p>The upcoming Shanghai hard fork for the Ethereum blockchain could also be a positive for the exchange according to JPMorgan\u2019s analysts.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Coinbase stops Japan operations amid trading slump<\/em><\/strong><\/p>\n<p>The upgrade \u201ccould usher in a new era of staking for Coinbase\u201d with analysts estimating 95% of retail investors on the platform may stake Ethereum post-upgrade, netting Coinbase up to nearly $600 million a year.<\/p>\n<p>On Jan. 6 the Coinbase share price hit an all-time low of $31.95 after over a year of constant price declines according to Yahoo Finance <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/quote\/COIN\/\">data<\/a>. The day prior, veteran investor and ARK Invest CEO, Cathie Wood, loaded up on $5.7 million worth of Coinbase shares.<\/p>\n<p>Since then the share price of Coinbase and other crypto-related companies have surged.<\/p>\n<p>Coinbase gained 72.6% since the Jan. 6 low and traded at over $55 at the close of market on Jan. 20, where it saw an 11.6% gain on the day.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\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\/coinbase-cut-costs-and-bolstered-rep-but-profits-remain-challenged-analysts\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts &#8220; Cryptocurrency exchange Coinbase won\u2019t escape from the profitability challenges it will face from the crypto market downturn, despite having a strong brand and credibility in the crypto market, according to investment analysts. Credit rating firm Moody\u2019s released a note on Coinbase on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":542419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/32ba2b12-4e91-47fc-b68a-64c94ab301f7.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74956,74860,75917,75117,117,70792,70359],"class_list":["post-542418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-coinbase","tag-cryptocurrency-exchange","tag-exchanges","tag-shares","tag-business","tag-jpmorgan-chase","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542418","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=542418"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542418\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/542419"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=542418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=542418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=542418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}