Coinbase ($COIN:Nasdaq), the most popular exchange in the U.S. for cryptocurrencies, has once again missed the mark. The exchange reported a record $1.1 billion second-quarter loss and lower-than-expected revenue.
While still licking its wounds from its failure to launch a NFT Marketplace similar to OpenSea, Coinbase revealed that revenue fell 31% to $808 million in Q2 of this year. Looking back at Q1 of 2022, the exchange reported a net loss of $430 million.
On top of missed expectations for the company, Coinbase announced on August 10th that they are being investigated by the SEC for their staking protocol.
“The company has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations and existing and intended future products,” as reported by Bloomberg via the company filing.
With revenue declining, many have been critical toward Coinbase’s approach to listing certain tokens on their exchange. Rumors are also circulating about company layoffs with up to possibly 1,100 employees being let go in June (which would result in an 18% drop in company headcount).
All of this pales in comparison to Coinbase reporting a $1.1 Billion in losses from the last quarter. Since its IPO, the company’s stock ($COIN) is down by roughly 65%.
Additionally, while Coinbase was being heralded by Jim Cramer and a number of hedge funds as the proxy for traditional accounts to get exposure to Bitcoin and cryptocurrencies, Coinbase manager Ishan Wahi, his brother, and his friend were committing insider trading. The New York U.S. The Attorney's office brought the case against the three men in late July. Needless to say, it has been an eventful summer for the company and one they would like to forget.